Doha: The dollar inched up to trade near a two-week high on Tuesday as surging oil prices lifted Treasury yields and reinforced expectations that the Federal Reserve will raise interest rates this week.

According to Qatar News Agency, the dollar index, which measures the greenback against a basket of currencies, was last at 99.55. The euro was slightly weaker against the dollar at $1.1538, as was sterling at $1.3494. The yen also pulled away from a seven-month high, last down roughly 0.2% at $154.72 ahead of an expected Bank of Japan rate hike on Friday.

Elsewhere, the New Zealand dollar and the Australian dollar were both roughly 0.1% lower, last at $0.5769 and $0.7133, respectively. Offshore yuan remained flat at 6.708 per dollar.

In the previous session, the yield on the benchmark 10-year Treasury breached the key psychological level of 5% for the first time since October 2023. The yield last traded at 4.9895%.