$100 Oil Sends Dollar Plummeting Against Yen

The dollar hovered near a seven-month low against the yen on Wednesday, September 9, as oil prices climbed above $100 a barrel amid escalating conflict in the Middle East. The U.S. currency has come under pressure largely due to the yen's sharp gains over the past week and shifting expectations ahead of policy decisions from the Federal Reserve and Bank of Japan.

The dollar was down 0.4% at 153.40 yen, not far from Tuesday's seven-month low of 152.89. According to Kevin Ford, FX & Macro strategist at Convera, 'The main story here is that the U.S. policy premium is putting a cap on the dollar's advance and we have the yen strengthening with the support of the U.S. Treasury.'

The oil price increase weighed heavily on global markets ahead of U.S. inflation data due on Friday and central bank meetings next week in the U.S. and Japan.