Market sentiment hinges on geopolitics and US measures to limit the Middle East’s instability.
The greenback’s range-bound trading is due to higher-for-longer rates, US growth resilience, and fears of escalating war.
The yen last fetched 149.62 per dollar, having slipped to 150.17 on Oct 3, the weakest in a year, before getting some relief in a brief rally. “Geopolitics will continue to be a key driver for markets in the week ahead as investors continue to weigh the risks of an escalation with the approach of the US authorities to prevent the conflict spreading to rest of the Middle East region,” said Charu Chanana, market strategist at Saxo in Singapore.
Federal Reserve Bank of Philadelphia President Patrick Harker said on Monday the central bank should not create new pressures in the economy by increasing the cost of borrowing.Christopher Wong, currency strategist at OCBC, said the dollar is likely caught in a range for now.