Oil prices rose sharply in Asian trade on Thursday, with U.S. crude futures hitting an over one-year high on continued signs of tighter supply, while positive data from China also aided sentiment. 

The signals helped markets largely look past concerns over higher-for-longer U.S. interest rates, following a string of hawkish comments from Federal Reserve officials.

The U.S. dollar held its position near a 10-month high against a basket of major currencies on Thursday. The dollar's strength was buoyed by optimistic U.S. economic data and anticipatory remarks from Federal Reserve officials. The U.S. dollar index, which measures the greenback against other major currencies, hovered around 106.58 after hitting an overnight peak of 106.84, its highest level since November 30.

In a week characterized by significant financial shifts, the strength of the US dollar (USD) has been emphasized, while the Canadian dollar (CAD) has fallen short, impacting both the EUR/USD and GBP/USD. These developments have been observed alongside a sharp fall in the S&P 500, according to a recent financial analysis.

Oil prices settled nearly 1% higher on Tuesday, rebounding from a slump to a two-week low in early trading as expectations of tighter supply outweighed worries that an uncertain economic outlook would crimp demand.

Brent crude futures settled 67 cents higher, or 0.7%, at $93.96 a barrel. U.S. West Texas Intermediate crude futures settled 71 cents higher, or 0.8%, at $90.39.

The dollar index hit a 10-month high on Tuesday while the Japanese yen came closer to the key 150 level, where Japanese officials are seen as potentially intervening to shore up the currency.

Benchmark 10-year U.S. government bond yields have jumped to 16-year highs this month as economic data remains robust despite higher interest rates.

Oil prices staged their strongest comeback on Tuesday from a week-long spotty run that raised questions on the market’s three-month rally. 

Gains were, however, limited by the unwavering dollar and uncertainty over how demand for U.S. crude and fuels might have fared last week.

The U.S. dollar rose Tuesday, climbing to 10-month highs after bond yields soared to 16-year peaks amid growing expectations that U.S. interest rates will rise further this year.

At 03:15 ET (07:15 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.2% higher at 105.880, having touched its highest level since November at 106.100 on Monday.

The Bitcoin and crypto fund management industry could potentially reach a staggering $650 billion within the next five years, according to a prediction by Alliance Bernstein (AB), a prominent asset manager with $646 billion under management. This forecast was published on Tuesday, following recent developments that have boosted the outlook for institutional adoption of Bitcoin by Wall Street firms.

In a recent forecast, JPMorgan has predicted a potential surge in Brent oil prices to $150 per barrel. This prediction was made on Monday, as the financial institution observed escalating oil rates that have been on a consistent upward trajectory.

The U.S. dollar edged higher, just below the recent six-month high, making a steady start to the new week as traders digested last week’s series of central bank interest rate decisions.

At 03:20 ET (07:20 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded largely unchanged at 105.262, having hit a six-month high on Friday.