Dollar Dips as Oil Eases, Rate Hike Bets Drive Weekly Advance

The US dollar declined on Friday as oil prices eased, but was still 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.

The decline in the dollar came as crude prices slumped more than 2%, with global oil prices remaining above $100 a barrel despite concerns over supply disruptions from Houthi attacks against Saudi Arabia.

Eugene Epstein, head of trading and structured products at Moneycorp in Stamford, Connecticut, said that the dollar's decline was 'just a combination of those factors' driving its recent strength, including higher bond yields and market concern about inflation.