Dollar Steadies as Oil Prices Climb

2026-09-09 01:45 By Jam Kaimo Samonte 1 min. read

The dollar index steadied around 98.8 on Wednesday, pausing its recent decline as rising oil prices intensified inflation concerns and strengthened expectations for a Federal Reserve rate hike.

Oil prices extended their gains after US forces destroyed five Iranian crude tankers near Kharg Island in retaliation for attempted missile attacks on a US warship.

Investors are also awaiting key US inflation data this week, which could provide further clues on the Federal Reserve’s policy outlook ahead of next week’s meeting.

Markets are currently pricing in roughly a 60% chance of a 25-basis-point Fed rate hike following stronger-than-expected jobs data released Friday.

The European Central Bank and Bank of Japan are likewise expected to tighten monetary policy this month.

Meanwhile, the dollar remained pressured against the yen after Treasury Secretary Scott Bessent warned traders against betting on further weakness in the Japanese currency.



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Dollar Steadies as Oil Prices Climb
The dollar index steadied around 98.8 on Wednesday, pausing its recent decline as rising oil prices intensified inflation concerns and strengthened expectations for a Federal Reserve rate hike. Oil prices extended their gains after US forces destroyed five Iranian crude tankers near Kharg Island in retaliation for attempted missile attacks on a US warship. Investors are also awaiting key US inflation data this week, which could provide further clues on the Federal Reserve’s policy outlook ahead of next week’s meeting. Markets are currently pricing in roughly a 60% chance of a 25-basis-point Fed rate hike following stronger-than-expected jobs data released Friday. The European Central Bank and Bank of Japan are likewise expected to tighten monetary policy this month. Meanwhile, the dollar remained pressured against the yen after Treasury Secretary Scott Bessent warned traders against betting on further weakness in the Japanese currency.
2026-09-09
Dollar Weakens as Yen Gains
The dollar index slipped to around 98.8 on Tuesday, declining for a second consecutive session as the yen extended its gains on expectations of more aggressive monetary tightening by the Bank of Japan and continued unwinding of carry trades. In the US, investors turned their attention to inflation data due this week, which could provide greater clarity on the interest rate outlook ahead of the Federal Reserve’s policy meeting next week. Markets are currently pricing in roughly a 60% probability of a 25-basis-point Fed rate hike next week following stronger-than-expected jobs data released on Friday. The European Central Bank is also expected to raise interest rates this week. Meanwhile, investors continued to track developments in the Middle East as renewed US-Iran fighting pushed oil prices higher, keeping inflation risks firmly in focus.
2026-09-08
Dollar Holds Steady as Fed Outlook Mulled
The dollar index held around 99 on Monday after rebounding slightly in the previous session, supported by stronger-than-expected US jobs data that reinforced expectations of a Federal Reserve interest rate hike in September. Data released Friday showed US nonfarm payrolls rose by 162,000 in August, following a revised increase of 23,000 in July and comfortably exceeding forecasts for a gain of 56,000. Meanwhile, the unemployment rate remained unchanged at 4.1%, while annual wage growth slowed to 3.1%, though the moderation was less pronounced than markets had expected. Investors raised the probability of a September Fed rate hike to around 60%, from roughly 50% before the jobs report. Attention now turns to US inflation figures due this week for further clues on the central bank’s policy path. The dollar also benefited from safe-haven demand as the US and Iran exchanged strikes on vessels over the weekend, sending oil prices higher.
2026-09-07