Dollar hits two-month high on rate bets

The U.S. dollar climbed to a nearly two-month high as strong economic data and hawkish Federal Reserve signals led investors to expect further interest-rate increases, while higher energy prices and geopolitical uncertainty added support. The euro and pound weakened, and the yen also came under pressure amid a widening policy gap with the Fed. The dollar eased slightly after its rally, as investors weighed whether upcoming data would justify further tightening and whether diplomatic progress in the Middle East could bring oil prices down; analysts cautioned that markets may already be pricing in more rate increases than the Fed’s projections imply.