U.S. dollar closes flat

The U.S. dollar was almost flat in late trading on Wednesday.

The dollar index, which measures the greenback against six major peers, moved up slightly to 99.135 at 3 p.m. (2000 GMT).

In late New York trading, the euro decreased to 1.1636 U.S. dollars from 1.1649 dollars in the previous session, and the British pound was down to 1.3431 dollars from 1.3435 dollars in the previous session.

The U.S. dollar bought 158.5 Japanese yen, lower than 159.11 Japanese yen in the previous session. The U.S. dollar fell to 0.8004 Swiss francs from 0.8006 Swiss francs, and it dropped to 1.3874 Canadian dollars from 1.3887 Canadian dollars.

The U.S. dollar was down to 9.2073 Swedish kronor from 9.2132 Swedish kronor.

The energy price shock triggered by tensions in the Middle East is weighing on German consumers and industry, placing further downward pressure on Europe's largest economy.

Sustained high oil and natural gas prices are expected to hit both Germany's economy and the global outlook, according to analysts.

"The economic outlook for Germany, and indeed for the global economy, depends crucially on the course of the conflict. This means that we will face a shortage of energy -- oil and gas -- for the foreseeable future, leading to sustained high energy prices. Naturally, this puts a strain on the German economy and also on the global economy," said Timo Wollmershauser, a researcher at the ifo Institute for Economic Research.

Escalating tensions in the Middle East are also denting German consumer confidence, as households grow more cautious about the economic outlook as energy bills climb, according to analysts.

"Germany is facing a major energy price shock. Rising oil prices are eroding real incomes across the country. People are noticing the impact at the pump, for example, and consequently have less money available for other expenses. As a result, consumption will be affected. Overall, this will weaken economic development in Germany," said Oliver Holtemoller, vice president of the Halle Institute for Economic Research.

As growing uncertainty undermines the confidence of German firms and financial markets, further clouding the prospects for an economic recovery, several German research institutes have revised down their projections for the country's future growth.

While the U.S.-Israel-Iran conflict continues, much attention is focusing on the severe disruption to shipping through the Strait of Hormuz -- a vital passageway which typically carries around one-quarter of global seaborne oil trade.

The current crisis along the Strait of Hormuz came as part of Iran's response to U.S.-Israeli operations, which saw it restricting navigation through the strait and targeting any vessels associated with the U.S. or Israel.