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Dollar near seven-month low vs yen as oil tops $100
The dollar was down 0.23% at 153.65 yen after Brent settled above $100 per barrel, while markets also looked ahead to central bank meetings next week.
The U.S. dollar traded near a seven-month low against the Japanese yen on Wednesday as oil settled above $100 a barrel amid an escalating conflict in the Middle East, according to Reuters. The dollar slipped 0.23% to 153.65 yen, not far from Tuesday's seven-month low of 152.89.
Investors also weighed shifting expectations for policy decisions from the Federal Reserve and the Bank of Japan. Reuters cited Kevin Ford, a FX and macro strategist at Convera, who said the U.S. policy premium was capping the dollar's advance while the yen strengthened, supported by the U.S. Treasury.
The dollar trimmed losses versus major peers after the U.S. Treasury said it would triple the size of its long-dated buyback operation on Thursday, purchasing up to $6 billion in bonds. Against the Swiss franc, the dollar edged up 0.11% to 0.8105.
Oil and geopolitical developments added pressure to broader markets ahead of U.S. inflation data due Friday and central bank meetings next week. Reuters reported that Brent crude futures rose 3.36% to settle at $101.21 a barrel, and said Iranian-backed Houthis launched strikes on Saudi cities while American forces struck Iranian oil tankers and Tehran hit a U.S. base in Jordan.
Latest closeWTI crude $97.01 ▲4.3%|Brent $102.05 ▲4.2%