European Stocks Fall as Bond Yields and Geopolitical Risks Weigh 
U.S. Treasury Yields Surge as 30-Year Hits 22-Year High 
Gold Holds Near $4,275 as Rising Treasury Yields Fuel Fed Rate Hike Bets 
Asian Currencies Mixed as Dollar Holds Near Two-Month High 
Dollar Holds Near Two-Month High as Yen Approaches 160 
Australia Unemployment Hits Five-Year High Despite Strong Jobs Growth 
Trump, Xi Focus on Trade and AI at White House Summit 
RBI Uses $10 Billion Currency Swaps to Drain Excess Rupee Liquidity 
US Stock Futures Fall as Treasury Yields Surge Ahead of Trump-Xi Summit 
Japan Private-Sector Growth Slows as Domestic Demand Weakens 
U.S. Dollar Hits Two-Month High as Oil, Treasury Yields Surge 
Fed’s Hammack Says Bond Yield Surge Is Not Driven by Inflation Fears 
Oil Prices Ease as Iran Tensions Clash With Diplomacy Hopes 
Japanese Bank Stocks Surge as Bond Yields Fuel Rate Hike Bets 
Wall Street Ends Flat as Oil, Treasury Yields and Fed Jitters Rattle Markets 
Asian Stocks Fall as Bond Yields Surge Ahead of Trump-Xi Summit 
Russian Envoy Dmitriev Heads to US for Ukraine Talks 
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The U.S. dollar weakened on Friday as oil prices retreated, although the currency remained headed for a second consecutive weekly gain as expectations for another Federal Reserve rate hike increased. The Japanese yen, meanwhile, rallied sharply after Japan and the United States reaffirmed concerns over excessive currency weakness.
The dollar index fell 0.3% to around 100.95, putting it on course for its largest daily percentage decline in roughly three weeks and ending a four-session winning streak. Crude oil prices dropped more than 2% as prospects for a U.S.-Iran truce outweighed supply concerns linked to escalating Houthi attacks on Saudi Arabia. Oil nevertheless remained above $100 a barrel, keeping inflation risks elevated.
Expectations for tighter U.S. monetary policy have supported the dollar in recent sessions. Markets placed the probability of a Federal Reserve rate hike in October at about 66%, up from roughly 58% a week earlier. Cleveland Fed President Beth Hammack also warned that persistently above-target inflation could undermine public confidence in the central bank’s ability to restore price stability.
U.S. economic data remained resilient. Orders for manufactured capital goods rose more than expected in August, while previous figures were revised higher, signaling continued strength in business investment. The University of Michigan’s Consumer Sentiment Index also edged up to 48.1 from 47.8, beating expectations of 47.6.
The euro gained 0.15% to $1.1396, though it remained on track for a third consecutive weekly decline. Sterling climbed 0.23% to $1.3246 following hawkish remarks from Bank of England Governor Andrew Bailey.
The yen strengthened about 1.1% to 157.13 per dollar after Japanese Finance Minister Satsuki Katayama said President Donald Trump had raised concerns about yen weakness. Katayama and U.S. Treasury Secretary Scott Bessent later reaffirmed concerns over yen undervaluation and pledged closer cooperation.
Despite Friday’s rebound, the yen remained headed for a second weekly decline as investors assessed the Bank of Japan’s latest rate hike and policy guidance. The dollar also edged 0.11% higher against the offshore Chinese yuan to 6.723 following the Trump-Xi summit in Washington.
