TOKYO (APP) – The dollar rallied against emerging units Friday while retreating against the yen as another oil price drop added to bearish market sentiment.
US crude fell below $31 a barrel after news that American stockpiles rose to the highest in more than eight decades, reigniting concerns about demand and broader worries about the global economy.
“Sentiment on the oil market has been a key macro driver for stock-market sentiment recently,” said Ric Spooner, Sydney-based chief market analyst at CMC Markets, according to Bloomberg.
“Concerns about the potential for credit-market problems in the event of a lower-for-longer oil scenario are near the top of a fairly long list of macro factors worrying investors at the moment.”
Traders pushed into the Japanese yen — considered a safe investment in times of turmoil — on the back of the uncertainty that hung over stock and forex markets.