US Dollar / Japanese Yen Trading (USDJPY)

Easing oil prices and retreating Treasury yields (around 5.23% ) provided some relief to financial markets as improving US-Iran diplomatic prospects reduced immediate inflation concerns. 

Oil inventories are nearing depletion, increasing supply risks and supporting prices. Aramco estimates less than 6 billion barrels remain after over 1 billion barrels were drawn this year, while the IEA is preparing a 100-million-barrel release. The US 10-year Treasury yield stabilized near 5.31% on Wednesday, close to 24-year peaks, as markets awaited the Fed's minutes.

The dollar index steadied around 102 on Tuesday, near its highest since April 2025, as the euro weakened on French fiscal and political concerns and Spain's upcoming snap election, yet stabilized near 1.1220 after touching its lowest level since May 2025. 

Safe-haven demand and elevated Treasury yields supported the dollar as Middle East tensions kept investors cautious at the start of the week. 

A firm US dollar and elevated Treasury yields continued to shape trading as September drew to a close. 

Elevated Treasury yields and persistent expectations for further Federal Reserve tightening continued to shape market sentiment. 

Central bank policy takes center stage as investors prepare for a series of major rate decisions this week. 

Global markets traded cautiously as shifting Federal Reserve expectations and easing geopolitical risks continued to shape sentiment. President Trump warned he'll bomb Oman if it stands in Washington's way, as reports suggest Iran and Oman are moving toward a deal on Strait of Hormuz control. 

Global markets remained focused on shifting Middle East developments and monetary policy expectations, with reports of progress toward a Strait of Hormuz shipping agreement influencing sentiment. 

Global markets remained cautious as renewed U.S.–Iran tensions and disruptions in the Strait of Hormuz fueled inflation concerns and lifted oil prices.