Oil Rebound Pushes US Dollar Higher Amid Rising Yields
The global oil market is seeing a significant rebound, with Brent crude hitting $90 per barrel for the fifth consecutive session. This surge in oil prices has led to a strengthening of the US dollar, which has pushed the USD/JPY exchange rate to around JPY159.35-159.40.
Despite official efforts to support the yen, the currency remains under pressure due to the firming yields and softer equities. The euro has slipped to nearly $1.1530 after a prior low near $1.1540, while sterling hovered around $1.35 after peaking near $1.3530.
The US dollar also held near its two-month low versus the Canadian dollar around CAD1.3925, staying below CAD1.3950. The Reserve Bank of Australia's hawkish hold has raised the implied probability of a rate hike this year to 69%, benefiting directly from rising crude.