Dollar falls as oil cools but set for weekly gain; yen rallies
TLT•The dollar index fell 0.3% to 100.96 on Friday but was set for a second consecutive weekly gain as rate hike bets and rising Treasury yields supported the currency. The yen rose 0.8% to 157.65 per dollar after Japan reiterated its shared stance with the United States on intervention.
1. Dollar gives back gains
The dollar index fell 0.3% to 100.96 on Friday after reaching a two-month high on Thursday, but remained on track for its first back-to-back weekly increase since June. Rising rate hike bets, robust economic data and a selloff in US bonds, which pushed long-dated Treasury yields to their highest in more than 20 years, had supported the currency.
2. Yen rises on warnings
The yen bounced 0.8% from a three-week low to 157.65 per dollar after Finance Minister Satsuki Katayama said the United States and Japan remained committed to the stance behind their July joint intervention. Katayama said she and US Treasury Secretary Scott Bessent would remain in close contact as officials stepped up warnings over yen weakness. The yen was still set for a second weekly decline.
3. Other currencies move
The euro rose 0.2% to $1.141 as energy prices fell, but was on track for a third weekly loss. Sterling gained 0.3% to $1.326 after hawkish comments from Bank of England Governor Andrew Bailey, while remaining near a three-month low.
