Dollar Dominates Amid Economic Shifts and Market Jitters

The dollar remained strong following robust U.S. economic data. Traders anticipate a tempered Federal Reserve rate cut approach. Asian stocks were mixed, with Japan's Nikkei rising on a weaker yen, while global attention turned to upcoming Chinese economic data. Oil prices fluctuated due to inventory dynamics and geopolitical tensions.

The dollar hovered close to an 11-week high against major currencies on Friday, bolstered by strong U.S. economic data. This development has provided the Federal Reserve with more flexibility in its monetary policy approach, mitigating immediate pressure for drastic rate cuts.

Asian stock markets displayed mixed performances; Japan's Nikkei rallied on a weaker yen while other markets cautiously awaited critical Chinese economic data. Concurrent market speculation about a possible Donald Trump election victory further supported the dollar and gold prices.

Despite geopolitical tensions and a surprise drop in U.S. oil inventories, crude oil prices saw slight increases. However, concerns over diminishing demand led to expectations of the largest weekly loss in oil prices in over a month.

(With inputs from agencies.)