Japanese yen strengthens as oil nears $100 per barrel

The Japanese yen held steady near its highest point in three months on Wednesday, pushing the dollar index to 98.15, its lowest level in nearly two weeks. Brent crude oil futures rose over 1.48% to $99.37 per barrel as tensions escalated following Houthi strikes on Saudi cities and U.S. military actions in the region. This conflict has intensified global market uncertainty ahead of a key U.S. inflation report scheduled for Friday. OCBC strategists noted that rising oil prices and yields might limit further declines in the dollar, but they expect central banks in the U.S. and Japan will need confirmation from upcoming data to make decisive moves on policy. The euro remained stable at $1.1631 while sterling closed at $1.3546.