Dollar Stabilizes Amid Energy Fears, Yen Weakens on Inflation

The US dollar held near its highest levels of the past week in Asian trading on Friday due to renewed fears of energy supply disruptions in the Middle East.

Energy prices rebounded during August, pushing up bond yields and oil prices. The U.S. dollar index measured against a basket of six currencies was trading flat at 99.084 after strengthening to its highest level since September 7 on Thursday.

The safe-haven US dollar gained on risk-aversion flows, according to Tony Sycamore, market analyst at IG in Sydney, who noted that higher energy prices lifted the chance of a Fed hike next week to 70%.

Despite this, major benchmarks remained above $100, with Brent crude futures down 0.6% at $106.99 a barrel in Asian trade.