The Australian dollar fell to around $0.70, retreating from a seven-week high and leaving it on course to end the week largely unchanged as renewed Middle East tensions weakened risk sentiment. The move came as the US dollar strengthened and oil prices climbed after reports of Iranian attacks in the Strait of Hormuz, a key oil shipping route, and uncertainty over an agreement to reopen the waterway. Higher energy prices revived inflation concerns and supported the view that global interest rates could stay higher for longer. In Australia, markets are pricing in virtually no chance of a rate increase at the Reserve Bank's monetary policy meeting next week after softer-than-expected second-quarter inflation data. Investors are also assigning little chance of a move in September and are pricing roughly a 60% probability of a rate hike in November if third-quarter inflation proves stronger than expected.