DOLLAR SET FOR BIGGEST SURGE IN A YEAR AS INFLATION FEARS MOUNT The dollar is on track for its strongest two-day rally in nearly a year after the widening Iran conflict spiked energy prices and stoked inflation fears. The Bloomberg Dollar Spot Index jumped 0.8% Tuesday, pushing Treasury yields to a three-week high and slashing expected Fed rate cuts this year to just 37 basis points — down from 60 last Friday. Oil topped $85 a barrel for the first time since July 2024, while European gas soared over 40% to its highest since 2023. Options and risk-reversal signals flipped sharply bullish on the greenback — the most since June — as real-money investors dumped euro and pound longs. Most G10 currencies tumbled 1% or more.(*Walter Bloomberg)