Dollar Skyrockets on Oil Price Spike and Trade War Escalation

The US dollar strengthened on Friday as oil prices surpassed $100 per barrel for the first time since May, fueled by Middle East tensions and trade wars.

Middle East turmoil and trade tensions pushed US Treasury yields higher, with the 10-year yield reaching an 18-month high above 4.7%.

Vishnu Varathan, Mizuho's head of macro strategy for Asia-Pacific, said that 'the world must be prepared for a double whammy of tariffs' due to oil prices and trade disruptions.

The dollar's resurgence also put pressure on the yen, which remained near a 40-year low at 163.86 per dollar.