Reuters

Oil prices edged higher on Friday as the market waited to see whether major oil producers would extend supply cuts beyond March at a meeting in Vienna later in the day.

The dollar edged down on the yen in early Friday trade against a backdrop of simmering tensions on the Korean peninsula, though the sharp divergence between U.S. and Japanese monetary policy contained the greenback’s losses.

The U.S. Treasury yield curve flattened to a two-and-a half month low and key world stock markets fell on Thursday, as investors assessed indications from the U.S. Federal Reserve that it may raise interest rates a third time this year.

The Canadian dollar weakened on Thursday against its U.S. counterpart as oil prices fell, but pared some losses after domestic data showed much stronger-than-expected growth in wholesale trade.

Signals the Fed will hike U.S. interest rates again this year and begin the ‘Great Unwinding’ of a decade of aggressive stimulus, drove the dollar to a two-month high versus the yen on Thursday and sent bonds and commodities lower.

British retail sales unexpectedly surged in August, official figures showed on Wednesday, boosting the chance that the Bank of England will raise interest rates in November.

The U.S. dollar shone while Asian shares slipped on Thursday after the U.S. Federal Reserve announced a plan to start shrinking its balance sheet and signaled one more rate hike later this year.

Oil markets dipped on Thursday, weighed down by rising crude inventories and production in the United States as well as a stronger dollar, which potentially hampers fuel consumption in countries that use other currencies at home.

Gold dropped to its lowest level in over three weeks on Thursday as a stronger dollar and increasing prospects of a December rate hike by the Federal Reserve curbed appetite for the metal.

The dollar rose to a two-month high against the yen and extended its gains against the euro on Thursday after a hawkish-sounding Federal Reserve heightened expectations for an interest rate hike in December.