Precise Investors Editorial Team
The dollar held near a three-week top against a range of currencies at 101.41
The dollar was underpinned by higher U.S. Treasury yields on Friday as a spike in oil prices and a renewed international trade war raised the stakes for inflation.
Sterling languished around a three-week low and bought $1.3310 in Asia trade, after slipping almost 0.5% in the previous session against a resurgent dollar.
The euro was similarly nursing losses and wobbled at $1.1381, drawing little support from the prospect of imminent European Central Bank rate hikes, while the dollar held near a three-week top against a range of currencies at 101.41.
The yen remained near a 40-year low at 163.80 per dollar.
The latest bout of dollar strength came as Brent oil prices jumped back above $100 a barrel after Yemen’s Houthis struck two Saudi oil tankers in the Red Sea, extending the Middle East war to a second major shipping chokepoint.
The U.S. president threatened further action against Iran and its allies.
Adding to the inflationary pulse, U.S. said it would impose new tariffs of 10% and 12.5% on goods from 60 trading partners over allegations of lax enforcement of forced labour bans, just as a temporary 10% world tariff expires.
I think the world pretty much is more comfortable guessing Trump’s style with tariffs, which is to say, big on upfront escalation and open to beg and negotiation. Whereas with Iran and the Houthis, you can’t undrop a bomb, can you?, said Vishnu Varathan, Mizuho’s head of macro strategy for Asia-Pacific.
The latest turmoil in the Middle East and renewed trade tensions sent U.S. Treasury yields higher on inflation fears, with the benchmark 10-year yield rising to an over 18-month high above 4.7%.
The 30-year yield held well above the 5% level, while 2-year yields were at their highest since February 2025 and last stood at 4.3627%.
I’m sure the question about whether 30-year yields will hit 6% is not far away, and your 10-year yield at 5% may be now more a bet than a fear, said Varathan.
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