The US dollar has strengthened broadly as talks to end the war in the Middle East showed no signs of progress, pushing oil prices higher and worrying investors that interest rates may need to stay higher to tackle inflationary pressures, according to Reuters.

Investors now fear that the ceasefire that has been in place since April 7 can be in danger and hostilities can resume in the conflict.

The euro weakened 0.24 per cent to $1.1754, while sterling last bought $1.3575, down 0.26 per cent. The dollar index, which measures the US currency against six others, is at 98.17, up 0.2pc.