The dollar remained firm through the close in the New York foreign exchange market. Trading was volatile as sharp swings in crude oil prices clouded the inflation outlook.
The dollar extended its gains to close higher in late New York foreign exchange trading. Crude oil prices fell early in the session but remained volatile in the latter half, clouding the inflation outlook.
Oil and the dollar rose after Iran said that the Strait of Hormuz could be reopened within 7 days if the United States eased its military pressure and the port blockade was lifted. Meanwhile, views that expectations for an agreement with Iran would increase following President Trump’s speech to the United Nations spread, causing overall optimism to recede.
Market participants said the probability of a rate hike by the FRB at its October meeting had fallen to 55.4%. The dollar index remained around 100.59, although it briefly rose to 100.70.
The dollar closed at around ¥157.41 against the yen. The euro remained on a downward trend in the $1.144 range, while the pound also continued to weaken in the $1.33 range, amid mixed expectations for an additional rate hike by the Bank of Japan.