Dollar ends mixed on Friday but still higher for the week
The US dollar ended Friday mixed but posted a weekly gain as risk appetite waned, with falling Treasury yields and lower crude oil prices weighing on the greenback.
The US dollar ended Friday's session mixed against major currencies but still managed to post a gain for the week as investors turned more cautious toward risk assets.
The greenback came under pressure from falling US Treasury yields, particularly at the short and intermediate maturities, and another sharp decline in crude oil prices as markets grew increasingly confident that Middle East tensions would not disrupt energy flows through the Strait of Hormuz. Against the euro, British pound, and Canadian dollar, the dollar edged lower, but these declines were modest. The dollar rose against the Australian and New Zealand dollars, while it was nearly unchanged versus the Swiss franc and Japanese yen. For the trading week, the dollar ended stronger against all major currencies, with the largest gains coming against the commodity-linked currencies.
For foreign exchange and currencies traders, the mixed Friday session underscores the ongoing tug-of-war between risk-off sentiment and yield dynamics. Falling US yields typically reduce the dollar's interest rate advantage, but a cautious mood can still support the greenback as a safe haven. Traders can monitor real-time FX quotes on NowPrice for the latest levels on dollar pairs. The divergence between the dollar's performance against different currencies highlights the importance of tracking individual currency drivers, such as commodity prices for the Aussie and Kiwi, and rate differentials for the euro and yen.
Looking ahead, markets will focus on upcoming US economic data, including employment figures and inflation reports, which could influence the Federal Reserve's policy path. Any shift in Fed expectations could trigger a re-evaluation of dollar positioning. Additionally, developments in the Middle East and oil markets will remain in focus, as further declines in crude could weigh on commodity currencies. Traders should also watch for any intervention rhetoric from Japanese authorities if the yen weakens further.