The dollar held steady on Friday but was poised for a weekly decline as a softer-than-expected U.S. inflation report this week led traders to cut bets on imminent rate hikes from the Federal Reserve, although escalating attacks in the Middle East soured sentiment.
Iran and the United States exchanged intensifying fire in a week-long escalation that has largely unravelled last month's truce, spurring safe haven bids for the dollar and leading oil prices near one-month highs. [O/R]
