Oil Price Surge Weighs on Currency Markets Ahead of US Inflation Readings

Currency markets remained subdued on Thursday as investors weighed a fresh surge in oil prices and global bond yields.

Brent crude futures stayed above $100 a barrel after breaching that level on Wednesday, with Iran and the US engaging in a wave of attacks on shipping, threatening to disrupt energy supplies from the Middle East.

The increase in energy-induced inflation pressure sent global bond yields upward, with benchmark 10-year Treasury yields reaching their highest levels since 2023 due to a disappointing buyback program of longer-dated bonds.

The greenback found some relief, but the euro and sterling remained slightly weaker at $1.1633 and 1.3547, respectively.