Dollar Surges Amid Rising Oil Prices, Yen Weakens
The US dollar surged to its highest level in a week on Friday, while the yen weakened for the second consecutive session. The rise in oil prices and bond yields led investors to reassess their outlook for US interest rates amid worsening energy disruptions in the Middle East.
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%.' The US dollar index, which measures the dollar against six major currencies, was at 99.081 in Asian trading, up 0.3% from Thursday's close.
The rise in oil prices has increased concerns about energy and shipping disruptions, with Brent crude futures rising to $108.96 a barrel in Asian trading. This is the sixth consecutive session of gains for Brent crude.