Dollar Finds Support on Higher Oil Prices
The US dollar index steadied around 101.7 on Wednesday after hitting three-week lows in the previous session, finding support as rising oil prices heightened inflation concerns and strengthened safe-haven demand for the greenback. Oil prices resumed their upward trend after a diplomat disputed reports that an agreement to end the US-Iran conflict was imminent, while confirming that negotiations remain ongoing. Meanwhile, the US Federal Reserve is widely expected to keep interest rates unchanged next week, with markets anticipating a potential rate hike in December. Elsewhere, the yen traded within a narrow range as the Bank of Japan is expected to maintain its policy rate next week before raising it in December. The euro also stabilized after weakening earlier in the week following violent protests in France and other European countries, although widespread unrest has since subsided.
The US dollar index steadied around 101.7 on Wednesday after hitting three-week lows in the previous session, finding support as rising oil prices heightened inflation concerns and strengthened safe-haven demand for the greenback. Oil prices resumed their upward trend after a diplomat disputed reports that an agreement to end the US-Iran conflict was imminent, while confirming that negotiations remain ongoing. Meanwhile, the US Federal Reserve is widely expected to keep interest rates unchanged next week, with markets anticipating a potential rate hike in December.
Elsewhere, the yen traded within a narrow range as the Bank of Japan is expected to maintain its policy rate next week before raising it in December. The euro also stabilized after weakening earlier in the week following violent protests in France and other European countries, although widespread unrest has since subsided.