Dollar dips as oil eases, yen jumps on Japan remarks
SPY•The dollar index fell 0.3% to 100.95 as oil prices dropped more than 2%, while the yen rose 1.06% to 157.13 after Japan reiterated concerns about yen weakness and cooperation with the United States.
1. Dollar slips as oil eases
The dollar declined on Friday as oil prices fell more than 2%, but it remained on track for a second straight weekly gain as expectations for Federal Reserve rate increases supported yields. The dollar index fell 0.3% to 100.95, its biggest daily drop in about three weeks. Markets put the chance of an October rate hike at about 66%, up from 58% a week earlier.
2. Yen rises on intervention warnings
The yen strengthened 1.06% to 157.13, heading for its biggest daily gain against the dollar since September 7. Japan’s Finance Minister Satsuki Katayama said President Donald Trump raised concern about yen weakness during a meeting with Prime Minister Sanae Takaichi. Katayama and U.S. Treasury Secretary Scott Bessent reaffirmed that yen undervaluation was a concern and said the countries intended to strengthen cooperation.
3. Other currencies and data
The euro rose 0.15% to $1.1396 but was on pace for a third consecutive weekly decline. Sterling gained 0.23% to $1.3246 after hawkish comments from Bank of England Governor Andrew Bailey, while remaining near a three-month low. U.S. capital goods orders increased more than expected in August, and consumer sentiment ticked up to 48.1 from 47.8.
