$100 Oil Sends Dollar Plummeting Near Seven-Month Low Against Yen
The US dollar traded near a seven-month low against the yen on Wednesday as oil prices settled above $100 a barrel due to an escalating conflict in the Middle East. The sharp gains of the yen over the past week have put pressure on the dollar, with expectations of policy decisions from the Federal Reserve and Bank of Japan also contributing to its decline.
The dollar was down 0.23% at 153.65 yen, close to Tuesday's seven-month low of 152.89. Kevin Ford, FX & Macro strategist at Convera, said that 'the main story here is that the US policy premium is putting a cap on the dollar's advance' and that the yen's strength is supported by the US Treasury.
The dollar index was flat at 98.83, nearing its lowest in almost two weeks. Brent crude futures rose 3.36% to settle at $101.21 a barrel, weighing on global markets ahead of US inflation data due on Friday and central bank meetings next week.