Resurfacing tensions in the Middle East is seen supporting the greenback on Tuesday. The dollar index is extending gains from the previous session and has climbed back above 101 mark as President Donald Trump has reportedly announced plans to reinstate a blockade on Iranian vessels transiting the Strait of Hormuz and sought reimbursement from countries benefiting from US efforts to secure the vital shipping lane. Going ahead, investors will look forward to US data on consumer price index and Fed Chairman Kevin Warsh's testimony on the Semiannual Monetary Policy Report before the US House Financial Services Committee. Meanwhile, escalating tensions in the Middle East that are driving oil prices sharply higher and fueling concerns over inflation and the interest rate outlook are keeping yields on the US 10-year Treasury note held around a two month high of 4.62% on today.
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