Dollar Holds Firm Amid Mideast Energy Shocks

The U.S. dollar has maintained its strength in Asian trading on Friday, with the dollar index holding near its highest levels of the past week. The renewed fears of energy supply disruptions in the Middle East have pushed up bond yields and oil prices.

Data released earlier this week showed that U.S. producer prices increased 0.4% in August, meeting market expectations as energy prices rebounded during the month. This has lifted the chance of a Fed hike next week to 70%, according to Tony Sycamore, market analyst at IG in Sydney.

The energy prices have snapped a five-day gaining streak, with Brent crude futures down 0.6% at $106.99 a barrel in Asian trade. However, both major benchmarks remain above the $100 mark earlier this week.