Oil Price Surge Subdues Currency Markets Amid Global Interest Rate Hikes

Currency markets were subdued on Thursday as investors weighed the impact of a fresh surge in oil prices and global bond yields.

The increase in oil prices, which saw Brent crude futures remain above $100 a barrel, led to higher inflation pressure and sent global bond yields back up.

The greenback found some relief, but the yen's powerful rally paused ahead of U.S. PPI and inflation readings.

The European Central Bank is set to raise interest rates for the second time this year on Thursday, while the Bank of Japan is expected to hike interest rates next week amid concerns over price pressures and yen weakness.