Markets Steady Amid Oil Price Shock, Yen Rally Pauses
Currency markets showed stability in cautious trading on September 10, as investors weighed the latest surge in oil prices and global bond yields. The rally of the yen paused ahead of US producer price and inflation readings.
Brent crude futures remained above $100 a barrel after breaching that threshold on Wednesday. Fresh inflationary pressures from the energy crisis pushed global bond yields back onto an upward trajectory, with the benchmark 10-year US Treasury yield climbing to its highest since 2023.
The dollar drew modest support, nudging the euro and sterling slightly lower to $1.1633 and $1.3547 respectively. This halted the yen's ascent to a seven-month peak, trading marginally lower at 153.70 after being confined to a narrow range ahead of an expected rate hike in Japan next week.
The dollar index, which tracks the US currency against a basket of peers, reached 98.81, edging away from a three-week low. The New Zealand dollar rose 0.2 percent to $0.5848, while the Australian dollar steadied at $0.7215.