Dollar Declines as Oil Eases, Yen Strengthens on Japanese Remarks

The US dollar declined on Friday as oil prices eased, but remains poised for its second straight weekly advance due to growing rate hike bets. The dollar index fell 0.3% and was on track for its biggest daily percentage drop in about three weeks, to 100.95.

New orders for US-manufactured capital goods increased more than expected in August, while data for the prior month was revised sharply higher, pointing to another quarter of robust growth in business spending. The University of Michigan's Surveys of Consumers also showed its Consumer Sentiment Index ticked up to 48.1 from the prior reading of 47.8.

The yen strengthened by 1.06% on Friday after Japan's Finance Minister Satsuki Katayama said US President Donald Trump raised concern about yen weakness during a summit with Japanese Prime Minister Sanae Takaichi earlier this week. The dollar index was driven stronger overall by factors including general bond yields going up and market concerns over inflation.