Forex
Dollar Dives Near Nine-Week Lows Amid Oil Shock and Yen Surge
The US dollar struggled to regain its strength on Wednesday, hovering near nine-week lows around 98.4 as Brent crude oil prices neared $100 and the yen surged to a seven-month high.
Despite last week's blockbuster payrolls report, which saw nonfarm payrolls surge to 162,000, the dollar failed to build momentum and slipped in thin post-Labour-Day liquidity.
The oil shock, coupled with reports of attacks on Saudi energy infrastructure, has pushed inflation risk and Fed-hike pricing back into focus. Goldman Sachs warns that Brent could exceed $120 if the Strait of Hormuz disruption is prolonged.