Forex
Dollar Soars on Fears of Middle East Energy Disruptions
The U.S. dollar strengthened to its highest level since September 7 on Friday in Asian trading, as renewed fears of energy supply disruptions in the Middle East pushed up bond yields and oil prices.
According to Tony Sycamore, market analyst at IG in Sydney, the safe-haven U.S. dollar gained on risk-aversion flows, helped by higher energy prices that have lifted the chance of a Fed hike next week to 70%.
Energy prices snapped a five-day gaining streak, with Brent crude futures down 0.6% at $106.99 a barrel in Asian trade, but both major benchmarks remained above the $100 mark earlier this week.