Dollar Slips Amid Eased Oil Prices as Yen Rallies on Japan Intervention
The US dollar fell on Friday as oil prices eased, but remained poised for its second straight weekly advance due to growing expectations of further rate hikes. The dollar index, which measures the greenback against five other currencies, dropped 0.34% and was on track for its biggest daily percentage drop since September 3, to 100.95.
Crude prices have decreased by more than 1%, leading to a slight decrease in the dollar's value. However, the potential for a truce between the US and Iran has weighed down supply concerns from increasing attacks by Houthi fighters against Saudi Arabia. The dollar remains above $100 a barrel, maintaining upward pressure on inflation.
Eugene Epstein, head of trading and structured products at Moneycorp in Stamford, Connecticut, noted that the dollar's recent rally may be 'a little stretched', but emphasized that it is still driven by factors such as growing rate hike expectations and rising bond yields.