Dollar Soars as Oil Prices Hit New Highs Amid Trade War Escalation
The US dollar strengthened on Friday due to higher U.S. Treasury yields, reaching near a 40-year peak against the yen.
The spike in oil prices and renewed global trade tensions contributed to inflation fears, which underpinned the dollar's strength.
Brent oil prices rose above $100 a barrel after Yemen's Houthis struck two Saudi oil tankers in the Red Sea, prompting US President Donald Trump to threaten 'major military punishment' for Iran and its allies.
U.S. Treasury yields surged, with the benchmark 10-year yield reaching an over 18-month high above 4.7%, while the 30-year yield held well above the 5% level.