Dollar edges toward one week high as hot US inflation boosts Fed hike bets and oil sours markets

Surprising inflation lift flips rate expectations fast

A surprise spike in US inflation lifted Treasury yields and strengthened the dollar near a one week high. The euro and sterling weakened as rate hike expectations jumped, while rising oil prices tied to Middle East tensions kept investors cautious. The dollar index stayed firm despite sluggish equities, and the yen held steady after speculation about intervention.