Dollar Dips Amid Oil Price Drop, Yen Surges on Tokyo-Washington Intervention Remarks

The US dollar dipped on Wednesday as oil prices slumped more than 2% to below $100 a barrel, but is still poised for its second straight weekly gain due to growing expectations of rate hikes. The Dollar Index (DXY), which measures the dollar against five other currencies, fell 0.3% and was on track for its biggest daily percentage drop in about three weeks.

The euro, however, rose 0.15% to $1.0226 as it remained close to a three-month low hit on Thursday. Expectations of a rate hike from the Federal Reserve at its October meeting stood at around 66%, according to CME FedWatch, up from about 58% a week earlier.

Meanwhile, the yen surged 1.06% against the dollar after Japan's Finance Minister Satsuki Katayama said US President Donald Trump raised concerns about yen weakness during a summit with Japanese Prime Minister Sanae Takaichi earlier in the week.