US Dollar fluctuates against Euro and Yen amid oil price surge

The US dollar experienced mixed performance against major global currencies last week. While the dollar index fell slightly by 0.03 percent to 101.75 points, it strengthened by 0.3 percent against the euro, which dropped to 1.1202 dollars due to political and fiscal instability in France. Conversely, the dollar weakened by 0.7 percent against the Japanese yen, reaching 156.87 yen.

Rising oil prices, driven by the ongoing crisis in the Middle East, have reached five-month highs, fueling global inflation concerns. This trend follows significant inflation increases in the US during September. Consequently, analysts anticipate further interest rate hikes by the Federal Reserve, potentially in December, following a 0.25 percentage point increase in September.

Central banks in Europe and Japan are scheduled to hold meetings next week. While immediate rate hikes are not expected, market analysts suggest these institutions may tighten monetary policy by the end of the year, with a 66 percent probability assigned to the European Central Bank taking action in December.