Dollar Rises as Oil Rally Fuels Inflation Concerns

Imagine currencies are players in a game.

The dollar scored its best day in two weeks.

This happened because oil got more expensive.

Oil got more expensive because a deal was reported.

The deal would stop some ships from passing through a very important waterway called the Strait of Hormuz.

When ships cannot pass, fuel costs more, and people worry prices will go up.

When people worry about prices going up, some think the central bank might raise interest rates.

Rising energy costs also made the dollar stronger against other money, so currencies like Japan's yen became weaker, crossing 158 yen per dollar.

Investors are watching closely and waiting to see what the US jobs report says on Friday.