Dollar Rally Pauses on Friday
The dollar index fell below 101 on Friday, pausing a five-session rally that had taken the greenback to July highs. A modest decline in oil prices, amid signs that US and Iranian negotiators may be exploring a phased agreement to reopen the Strait of Hormuz, provided some relief to investors concerned about inflationary pressures. Nevertheless, the dollar gained around 1% on the week, marking a second consecutive week of gains. The move was supported by expectations of further monetary policy tightening by the Fed, continued uncertainty in the Middle East, the sequential rise in oil prices, and resilient US economic activity. The greenback was mostly lower against the yen on Friday after Japanese authorities said Tokyo and Washington remain committed to the stance underpinning July’s joint interventions. Finance Minister Katayama also said that President Trump had expressed concerns about the yen during a meeting with Prime Minister Sanae Takaichi earlier this week.
The dollar index fell below 101 on Friday, pausing a five-session rally that had taken the greenback to July highs. A modest decline in oil prices, amid signs that US and Iranian negotiators may be exploring a phased agreement to reopen the Strait of Hormuz, provided some relief to investors concerned about inflationary pressures. Nevertheless, the dollar gained around 1% on the week, marking a second consecutive week of gains. The move was supported by expectations of further monetary policy tightening by the Fed, continued uncertainty in the Middle East, the sequential rise in oil prices, and resilient US economic activity.
The greenback was mostly lower against the yen on Friday after Japanese authorities said Tokyo and Washington remain committed to the stance underpinning July’s joint interventions. Finance Minister Katayama also said that President Trump had expressed concerns about the yen during a meeting with Prime Minister Sanae Takaichi earlier this week.