Dollar Holds Strong Amid Global Trade Tensions

On Friday, the dollar maintained its strength due to higher U.S. Treasury yields and geopolitical tensions, causing fluctuations in global currencies. Rising oil prices and new tariffs contributed to inflation fears, affecting various currencies and influencing central bank decisions amid ongoing economic uncertainty.

The dollar remained robust on Friday, propped up by higher U.S. Treasury yields and hovering near a 40-year peak against the yen. This strength comes amid heightened fears of inflation spurred by escalating oil prices and a renewed global trade war threat.

Sterling was at a three-week low, trading at $1.3310 in Asia after falling nearly 0.5% in the previous session. Meanwhile, the euro struggled at $1.1381 despite potential European Central Bank rate hikes, while the dollar stayed near a three-week high against a basket of currencies, registering 101.41.

Brent crude prices surged past $100 a barrel following attacks on Saudi oil tankers by Yemen's Houthis, escalating the Middle East conflict. U.S. President Donald Trump vowed serious military repercussions for Iran and its allies as new tariffs on 60 trading partners were announced, complicating global trade and heightening inflationary concerns.