Dollar clings to 2-month high as Gulf hostilities flare, yen wobbles near intervention zone

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Heightened Middle East tensions, including Iranian attacks and U.S. strikes, propelled oil prices and boosted the dollar's safe-haven appeal near a two-month peak. The yen teetered around the 160 mark, sparking intervention fears. Meanwhile, strong U.S. services inflation data reinforced expectations of sustained high interest rates, while the Bank of Japan signaled a potential rate hike this month.