The dollar remained close to its highest levels in the past week on Friday as Middle East conflicts drove up oil prices and bond yields, ahead of the U.S. inflation data due later in the day.
The U.S. dollar index traded flat at 99.09 after a 0.4% gain on Thursday.
Energy prices dipped on Friday, with Brent down 2% to $105 a barrel after climbing to its highest level since May on Thursday, near $110.
Meanwhile, Diesel prices rose above $6 a gallon for the first time ever, raising the risk of further energy-driven inflation just ahead of peak demand season for the fuel.
A fierce global bond selloff accelerated again on Friday as traders anticipated more interest rate increases worldwide. This move pushed the benchmark 10-year U.S. Treasury yield close to the key 5% threshold, while investors remained concerned about elevated government debt levels.
Yields on the two-year, which are more sensitive to Fed rate moves, rose to as high as 4.59% this week. Thirty-year yields hit their highest since 2007.
The U.S. dollar fell 0.1% against the Japanese yen to 154.22, on track for its second straight week of declines.
By CEO NA Editorial Staff
