0657 GMT - The U.S. dollar rises as investors anticipate the Federal Reserve will increase interest rates on Wednesday amid elevated oil prices as the Middle East conflict worsens and strong U.S. inflation and jobs data. High oil prices exacerbate inflation concerns, causing yields to rise, additionally boosting the dollar as the U.S. is an oil exporter. "Monetary policy may not be well suited to offsetting the current supply shock, but there's a need to keep inflationary expectations dampened," says BNY's John Velis in a note. Money markets are pricing in a 93% chance of a Fed rate hike this week, LSEG data show. The DXY dollar index rises 0.3% to 99.683, having hit a one-month high of 99.736 on Monday.