Dollar falls as oil eases, yen rallies on Japan remarks
TLT•The dollar fell 0.34% as oil prices eased, while the yen strengthened 1.09% after Japan said Tokyo and Washington remained committed to the stance behind their July joint intervention. The dollar index was at 100.95, while the euro was on track for a third straight weekly decline.
1. Dollar and oil
The dollar fell on Friday as crude prices dropped more than 1%, though the dollar index remained on track for a second straight weekly advance. It fell 0.34% to 100.95, its biggest daily decline in three weeks, while markets priced in a 66% chance of a Federal Reserve rate hike in October, up from 58% a week earlier.
2. Yen gains on warnings
The yen strengthened 1.09% to 157.13 per dollar after Finance Minister Satsuki Katayama said President Donald Trump had raised concern about yen weakness during a summit with Prime Minister Sanae Takaichi. Katayama said the remarks reaffirmed the shared US-Japan stance behind July’s joint intervention, and that she and Treasury Secretary Scott Bessent would stay in close contact.
3. Other currencies and data
The euro rose 0.2% to $1.1402 but was headed for a third weekly loss. Sterling gained 0.24% to $1.3247, supported by comments from Bank of England Governor Andrew Bailey, while remaining near a three-month low. US capital-goods orders increased more than expected in August, and the University of Michigan’s consumer sentiment index rose to 48.1 from 47.8.
