Dollar holds gains, yen slips as Mideast energy shock deepens

Business Recorder reported that the greenback held close to its strongest level in a week as Asian markets opened on Friday, while the yen extended its losses for a second session. Renewed worries that Middle East energy flows could be disrupted lifted bond yields and oil prices. The dollar index stood at 99.081, having climbed 0.3% on Thursday to its highest point since September 7.

Brent crude climbed 1.2% to $108.96 a barrel as Asian trading resumed, extending a six-session rally. US crude futures had crossed $100 on Thursday, a first since May 21, after Houthi forces seized Yemen's Mocha port. Against the yen, the dollar rose as much as 0.1% to 154.615, though the yen regained some ground after Japanese wholesale inflation rose 7.6% year on year in August.

Traders are awaiting US consumer price index data due later on Friday, one of the last major releases before next week's Fed meeting. Fed funds futures implied a 71.3% probability of a quarter-point rate increase at the two-day meeting ending September 16, up from 61.2% in the prior session, according to CME Group's FedWatch tool. The 10-year Treasury yield rose 2.3 basis points to 4.965%, and bond markets stayed uneasy even after the US Treasury tripled the scale of its long-dated bond buyback.