Dollar buying resumes in New York as US long-term yields climb on oil price surge and sticky inflation

Dollar buying resumed in New York foreign exchange markets as US long-term interest rates rose again, driven by higher oil prices and persistent inflation concerns. Early trading saw dollar selling as August core PCE inflation came in below expectations, lowering October Fed rate hike odds from near 70% to about 30%, before recovering to nearly 40%. The PCE slowdown may reflect methodology changes, and rising crude oil futures to $91.76 pushed long-term yields back up. The dollar-yen pair fell to 156.64 then rose to 157.23, while euro-dollar and pound-dollar also reversed initial gains.