Dollar Dips as Oil Eases, Yen Jumps on Japan-US Currency Commitment
The US dollar lost ground on Friday as oil prices retreated from recent highs, but it's poised to end the week higher due to expectations of more interest rate hikes. The Dollar Index fell 0.3% to 100.95, its biggest daily drop in about three weeks.
Oil prices have eased above $100 a barrel, alleviating some inflationary pressures. However, comments from Federal Reserve officials raised alarms over ongoing inflation, prompting expectations for more interest rate increases this year.
The yen surged after Japan's Finance Minister Satsuki Katayama said US President Donald Trump expressed concern about yen weakness during a recent summit with Japanese Prime Minister Sanae Takaichi. The currency rose 1.06% to 157.13, its biggest daily gain against the dollar since September 7.
Global oil prices have eased as the potential for a truce between the US and Iran outweighed supply concerns from increasing attacks by Houthi fighters against Saudi Arabia.