Oil Price Surge and Global Yields Keep Currency Markets on Edge

Currency markets remained steady on Thursday despite another jump in oil prices and global bond yields. Oil futures stayed above $100 a barrel for a second day, with energy flows from the Gulf slowing to a trickle due to attacks by Iran and the US.

The European Central Bank is expected to raise eurozone rates for a second time since the war started in late February to tackle inflation concerns. Global bond yields have reached multi-decade highs, but this hasn't drawn safe-haven flows into the dollar.

Richard Franulovich, head of FX strategy at Westpac Institutional Bank, noted that markets are becoming less sensitive to oil shocks as the war drags on. Debts trades, central bank tightening, and a more interventionist Treasury Department have also been weighing on the dollar.