The dollar index slipped below 101 on Friday, halting a five-session rally that had pushed the greenback to its highest levels since July. A modest pullback in oil prices — amid indications that US and Iranian negotiators may be working toward a phased deal to reopen the Strait of Hormuz — offered some relief to investors worried about renewed inflation pressures.
Even so, the dollar advanced roughly 1% over the week, posting a second consecutive weekly gain. The move was underpinned by expectations of further Federal Reserve tightening, persistent geopolitical uncertainty in the Middle East, the recent sequential rise in oil prices, and resilient US economic data.
The greenback was mostly weaker against the yen on Friday after Japanese officials emphasized that Tokyo and Washington remain committed to the policy stance that supported July’s joint interventions. Finance Minister Katayama also noted that President Trump had voiced concerns about yen movements during his meeting with Prime Minister Sanae Takaichi earlier this week.
