Dollar’s Oil-Fueled Rise Derailed by Surging Global Yields

The dollar posted its worst day since January after key central banks flagged the risk of an inflationary shock amid the intensifying Middle East conflict and as investors gauge the global supply outlook for oil.

The Bloomberg Dollar Spot Index fell 0.7% on the session, the largest drop in about seven weeks. Sterling rose 1.3% against the greenback to $1.3430, on course for its best daily gain since January, while the euro rallied 1.2% to $1.1586.