Dollar Climbs Amid Iran Deal Uncertainty and Jobs Data Loom
The US dollar gained ground against major peers on Friday as investors weighed the possibility of an Iran peace deal and awaited crucial jobs data. The dollar's safe-haven appeal was boosted by doubts over a potential agreement, with Brent crude oil prices rising to $83.80 per barrel.
Market sentiment received further support from a Financial Times report suggesting that Federal Reserve Chair Kevin Warsh is open to a September interest rate hike, pending incoming data. However, Commonwealth Bank of Australia economist Kristina Clifton expects the Fed to wait until December before starting a modest tightening cycle.
The dollar was mostly flat as of the Asian afternoon on Friday, trading little changed at 158.365 yen after gaining 0.4% on Thursday. Against the euro, the greenback edged up to $1.1521 after strengthening about 0.3% in the prior session.
A proposed deal between Iran and Oman could give Tehran control over inbound traffic through the Strait of Hormuz, but US officials have repeatedly insisted that they would never agree to Iranian control of access to the world's most important trade route for energy supplies.