Dollar Falls as Yen Rallies on Joint Intervention Commitment

The dollar declined on Friday but is poised for its second consecutive weekly gain due to rising rate hike bets. The yen, however, strengthened after Japan's Finance Minister Satsuki Katayama said Tokyo and Washington remain committed to the stance behind July's joint intervention.

The euro rose 0.2 percent to US$1.141 as energy prices fell, moderating wagers on Federal Reserve rate increases. But it is set for a third weekly decline after touching a two-month low on Thursday.

Markets have aggressively repriced the US interest rate trajectory after the Federal Reserve tightened policy last week. Robust economic data, fresh energy supply concerns, and a chorus of hawkish Fed speakers have strengthened that conviction.