The dollar index climbed from a two-week low on Tuesday after Iran reportedly denied it had held talks with the US to end the war, contradicting US President Donald Trump's remarks on Monday that a deal could be reached soon. Meanwhile, investors remain concerned that energy-driven cost pressures could revive inflation amid effective closure of the Strait of Hormuz, which has led to severe disruption of energy trade but this further supports crude oil prices. This raises the risk of higher inflation in the coming months and the possibility of interest rate hikes from major central banks. The yield on the US 10-year Treasury note also climbed back above 4.37% on Tuesday, reversing part of the previous session’s decline after Iran’s denial claims. The dollar index rebounded above 99 mark after the index took a beating below the level yesterday. Meanwhile, investors will now shift their focus to upcoming US manufacturing data for fresh cues on how businesses are faring under heightened geopolitical risks. EUR/USD and GBP/USD are both edging lower by around 0.3% to the tune of dollar gains.