Elevated energy prices and geopolitical uncertainty weigh on sentiment, pushing oil above $100 per barrel.
Market participants increase dollar positions, unwinding prior optimism and favoring stability over risk.
The euro holds near $1.17, set for its first weekly decline in four weeks amid cautious trading conditions.
Sterling edges lower despite economic data, reflecting broader pressure from rising costs and subdued consumer activity.
The Japanese yen weakens slightly, hovering near key intervention levels as policy expectations remain in focus.
The dollar index rises modestly, positioning for a weekly gain and signaling renewed investor confidence in the currency.
Earlier risk appetite faded quickly, reversing flows into volatile currencies and reinforcing demand for dollar exposure.
Investors now watch economic data closely for signals on how rising energy costs impact broader market conditions.
