Dollar hovers near 18-month peak as oil volatility and US inflation data loom
The dollar stayed close to its 18-month high while oil prices swung amid intensified Houthi attacks and anticipation of the US CPI report.
The U.S. dollar index held near its 18-month high, buoyed by geopolitical tension and market caution. Oil prices fluctuated after Iran-backed Houthi militants stepped up attacks on Saudi energy assets and two tankers were hit over the weekend, while President Donald Trump announced a cease-fire on energy supplies between Ukraine and Russia. Brent crude fell about 1% to $103.55 a barrel in Asian trading.
Commonwealth Bank of Australia analysts expect the Houthis’ campaign to sustain higher oil and dollar levels, noting no imminent peace breakthrough from Iran. Market attention now shifts to the US consumer price index due Wednesday, the last major data point before the Federal Reserve’s October policy meeting, with most traders betting the Fed will keep rates steady. Meanwhile, the euro edged higher despite France’s fiscal concerns, and the pound and yuan showed little movement.
Why it matters
Currency and oil fluctuations influence global prices, borrowing costs and everyday expenses for consumers worldwide.
How this story developed
- Sep 21 30-year U.S. Treasury Yield Hits 2002 High Amid Widening Debt Sell-off
- Sep 30 Japanese equities rose alongside broader Asian stocks while markets awaited key US inflation figures that could steer interest-rate policy.
- Oct 2 South Korean equities opened slightly lower on Friday, with the KOSPI down about 0.15% despite gains on Wall Street.
- Oct 7 Nasdaq closed at a record high and Japan lifted its 10‑year bond coupon to 3.1%.
- Oct 7 The Treasury announced plans to sell a $39 billion block of 10‑year notes.
- Oct 8 The market recorded a third straight day of losses.
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