The U.S. dollar index touched 101.210 for the first time since July 2

The U.S. dollar edged to its highest levels in a week in Asian trade on Wednesday amid renewed ​strikes between Iran and U.S., while New Zealand’s currency jumped after the country’s central ‌bank lifted interest rates and flagged further tightening.

The U.S. currency strengthened 0.2% to 162.46 yen, advancing for a fourth day to reached the strongest level since July 2. The euro slipped 0.1% to $1.1405, while the ​British pound nudged 0.1% lower to $1.3351.

Meanwhile, the kiwi dollar jumped 0.5% to ​highs of $0.5705 after the Reserve Bank of New Zealand hiked rates by ⁠25 basis points to 2.5% to curb inflation pressures, as most economists had expected, ​and said some further reduction in monetary stimulus is likely to be required to control ​inflation.

The Australian dollar added 0.1% at $0.6938.

The U.S. dollar index touched 101.210 for the first time since July 2.

Bids for the dollar, so-called international safe haven, came after the tit for tat attacks between Iran and U.S. on Tuesday and tried to stop Iran from sell oil after three tankers were ‌attacked ⁠in the Strait of Hormuz.

For now, the market is keeping to the playbook that Tehran and Washington are still in a high-stakes game to gain leverage during the temporary truce, and that Tuesday’s incident would not descend back into a full-scale war, ​DBS analysts wrote in ​a research report. However, ⁠the incident was a reminder that the real risk remains the expiry of the interim ceasefire agreement in mid-August and the ​red line over transit fees in the Strait of Hormuz.

Brent crude ​was up 2.5% ⁠at $76.03 a barrel in Asian morning trade on Wednesday, extending a rally into a second day.