Dollar index slips to 100.96 but remains on track for second weekly gain

  • The dollar index fell 0.3% to 100.96 on Friday after reaching a two-month high.
  • The dollar remained on track for its second consecutive weekly gain.
  • Japan's Finance Minister Satsuki Katayama reaffirmed the U.S.-Japan stance behind July's joint intervention.

The dollar index fell 0.3% to 100.96 on Friday after reaching a two-month high a day earlier, though it remained on track for a second consecutive weekly gain as investors raised expectations for further Federal Reserve rate increases. Strong U.S. data, renewed energy-supply concerns and hawkish Fed commentary had driven a bond selloff that pushed long-dated Treasury yields to their highest levels in more than 20 years. The yen rose 0.8% to 157.65 per dollar after Finance Minister Satsuki Katayama said President Donald Trump had raised concerns about yen weakness with Prime Minister Sanae Takaichi, reaffirming the U.S.-Japan stance behind July's joint intervention. The euro and sterling rose as oil prices eased, while the offshore yuan was steady after the Trump-Xi summit produced no apparent breakthrough on major geopolitical and trade issues.

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