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Dollar edges higher as oil slips amid UAE-Iran asset release reports

Reports said the UAE released a further tranche of Iran frozen assets, including gold worth about $212 million, while Japan’s producer prices stayed elevated and supported renewed rate hike expectations.

Reported · Written up by our desk · Major Pairs

Oil inched lower as reports during the session gained traction that the United Arab Emirates released another tranche of Iran’s frozen assets held in Emirati banks, reportedly including gold worth around $212 million, transferred over August 11 and 12. The claim was described as not widely corroborated, and it would be the third reported release by the UAE government if accurate.

The dollar posted modest gains, while the Australian and New Zealand dollars softened. The Australian dollar faced pressure after remarks from Reserve Bank of Australia Assistant Governor Christopher Kent were interpreted as leaning more dovish than hawkish, even as Kent said inflation risks remain tilted to the upside and further rate increases are possible.

In Japan, July producer prices remained elevated at 7.2% year on year, below the 7.4% forecast, but with yen-denominated import prices up 29.1% keeping imported inflation pressure in focus. That backdrop reinforced expectations of a Bank of Japan rate hike in September, according to Forexlive.

The New Zealand dollar softened after the Reserve Bank of New Zealand’s third-quarter inflation expectations survey showed a sharper-than-expected decline. One-year inflation expectations fell to 2.6% from 3.4%, and two-year expectations eased to 2.3% from 2.5%, trimming market expectations for a rate hike at the RBNZ’s next scheduled decision on September 2.

Latest closeGold $4,467.10 ▲1.9%

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