Archive · 26 Sep 2026
Dollar Dips as Oil Eases, Yen Jumps on Japan Remarks
The dollar became a little weaker on Friday after oil prices fell.
However, investors still expected the dollar to finish the week higher.
The Japanese yen became stronger after Japan and the United States warned that the yen may be too weak.
They also said they would work together on the issue.
Investors were watching to see whether the United States Federal Reserve would raise interest rates again.
Higher interest rates can make a currency more attractive to investors.
The euro was heading toward its third weekly loss, while the British pound stayed close to a recent low.
Oil was still expensive, costing more than $100 per barrel.
The dollar index fell 0.3% as oil prices declined more than 2%, though the dollar remained on track for a second weekly gain.
The yen rose 1.06% after Japan and the United States reaffirmed concerns about yen undervaluation and pledged closer cooperation.
Expectations for a Federal Reserve rate hike in October increased to about 66%, from roughly 58% a week earlier.
The euro gained 0.15% but was headed for a third consecutive weekly decline, while sterling remained near a three-month low.
Oil prices stayed above $100 per barrel as potential United States-Iran diplomacy outweighed concerns over attacks affecting supply.
- Who
- Currency traders, the United States Federal Reserve, Japanese and United States officials, and other central banks.
- What
- The dollar dipped while the yen rallied after renewed intervention warnings; the euro and sterling remained under pressure.
- When
- Friday, September 25; the dollar was set for a second consecutive weekly advance.
- Where
- Global currency markets, with key comments involving Japan, the United States, and Washington.
- Why
- Lower oil prices reduced some support for the dollar, while stronger rate-hike expectations supported it and Japan's intervention rhetoric lifted the yen.
- Dollar index
- Fell 0.3% to 100.95 and was headed for its largest daily decline in about three weeks.
- Yen
- Rose 1.06% to 157.13, its biggest daily gain against the dollar since September 7.
- Federal Reserve hike odds
- Expectations for an October rate increase rose to about 66%, from approximately 58% one week earlier.
- Euro
- Rose 0.15% to $1.1396 but was headed for a third straight weekly decline.
- Sterling
- Strengthened 0.23% to $1.3246 but remained near a three-month low.
- Oil
- Prices fell more than 2% but remained above $100 per barrel.
- United States economic data
- August manufactured capital-goods orders increased more than expected, while consumer sentiment rose to 48.1 from 47.8.