The dollar has traded near a two-month high as renewed Gulf hostilities sapped risk appetite, while traders were alert to the possibility of intervention as the Japanese yen hovered near the key 160 level, Reuters reports.

The dollar index, which measures the greenback against major peers, was little changed at 99.46, just below the two-month high of 99.56 reached in the previous session.

The euro rose 0.1pc to $1.161. A Reuters poll showed that the European Central Bank is set to raise its deposit rate to 2.25pc on June 11 to curb inflation. The British pound also climbed 0.1pc to $1.343.

“It’s hard to argue against dollar strength at this juncture,” said Francesco Pesole, currency strategist at ING. “Data continues to paint a picture of resilience for the U.S. economy,” he added.