Currency markets treaded water in cautious trading on Thursday as investors weighed a fresh surge in oil prices and global bond yields, while the yen's powerful rally also took a breather ahead of United States PPI and inflation readings.Brent crude futures remained firmly above US$100 a barrel after breaching the level on Wednesday, as Iran and the US engaged in the biggest wave of attacks on shipping by both sides since the start of the war, threatening to worsen the disruption of energy supplies from the Middle East.
The fresh energy-induced inflation pressure sent global bond yields back on an upward trajectory, with benchmark 10-year Treasury yields hitting their highest levels since 2023 as a buyback program of longer-dated bonds also disappointed.
The greenback found some marginal relief, leaving the euro and sterling slightly weaker at $1.1633 and 1.3547, respectively.
That also paused the Japanese currency's climb to fresh seven-month highs, with the yen last trading a shade weaker at 153.70 after being mostly stuck in a tight trading range ahead of an expected Bank of Japan rate hike next week.
The dollar index, which measures the greenback against a basket of currencies, was last traded at 98.81, inching away from a three-week low.
