Dollar holds firm as Middle East hostilities lift oil

TOKYO, Sept 2 : The dollar held firm on Wednesday as renewed hostilities in the Middle East pushed oil prices higher and revived inflation concerns.The currency's safe-haven appeal has been reinforced by rising Treasury yields and growing expectations of a Federal Reserve rate hike, even as recent economic data came in below forecasts.The U.S. launched a barrage of airstrikes on Iran on Tuesday, prompting Iranian retaliation in the most serious escalation in weeks. Oil prices rose nearly 1 per cent in early trade on Wednesday, extending the previous session's surge, with Brent futures up 0.92 per cent at $95.52 a barrel and U.S. West Texas Intermediate (WTI) crude 0.89 per cent firmer at $91.02. "Continued vigilance is needed over the situation in the Middle East today," said Kumiko Ishika