The dollar index hovered around 98.8 on Friday, heading for its first weekly gain in three weeks as stalled U.S.–Iran peace efforts lifted demand for the currency.
Japan’s 10-year government bond yield climbed to about 2.44%, its highest level in over a week, after inflation data pointed to renewed pressure from rising energy costs linked to the conflict.
The US 10-year Treasury yield also moved higher, reaching roughly 4.33% and extending gains for a fifth straight session. Ongoing disruptions in the Strait of Hormuz have kept energy prices elevated, reinforcing expectations that the Fed will maintain its current policy stance as markets continue to reassess inflation risks.
