Dollar Slips on Friday But Remains Poised for Second Consecutive Weekly Gain

The US dollar declined on Friday but is still poised to post its second consecutive weekly gain due to rising bets of rate hikes, despite moderating wagers after energy prices fell.

Energy prices eased on Friday following signs of easing supply disruptions and hopes for progress in talks between the US and Iran, but remained close to a one-week high as Middle East tensions persisted.

The yen rallied 0.8% from three-week lows to reach 157.65 per dollar after Japan's Finance Minister Satsuki Katayama said US President Donald Trump expressed concern about yen weakness during a summit with Japanese Prime Minister Sanae Takaichi earlier this week, reaffirming the shared stance behind July's joint intervention.

Khoon Goh, head of Asia research at ANZ, stated that whilst the dollar may get a boost from higher yields, lingering concerns around the US fiscal position and unpredictability of US policy making have hindered its ability to continue rallying.