Dollar fell against yen on Friday after yen marked 11-month lows recently following strong hints by the Federal Reserve for another interest rate hike this year.

Such bullish outlook boosted US treasury yields to incredible highs and boosted dollar's standing against rivals.

Yen was hurt as well after Bank of Japan decided to maintain interest rates at record lows last week, while vowing to continue supporting the economy until inflation reaches 2%. 

There's no sign so far that the Bank of Japan might start to unwind its ultra-easy monetary policies, heaping pressure on the currency.

USD/JPY last traded at 148.97, the highest since October 2022. 

Thus is the yen is trading dangerously close to 150, at which Japanese authorities might directly intervene to boost the currency. 

The yen is merely suffering from the widening policy gap between US treasury yields and Japanese government yields. 

The gap in 10-year government bonds between both countries surged to 382 basis points on Monday. 

US stock indices rose on Thursday following a spate of positive data.

Earlier US data showed GDP growth at 2.1% y/y in the second quarter.

US unemployment claims rose by two thousand to 204 thousand in the week ending September 23, while analysts expected 215 thousand.

On trading, Dow Jones rose 0.4%, or 133 points to 33,683, while S&P 500 rose 0.7%, or 30 points to 4305, as NASDAQ slid 1%, or 135 points to 13,227. 

Oil prices fell on Thursday amid expectations major global economies will maintain high interest rates for an extended duration to combat inflation, in turn threatening recession and potentially hurting fuel demand.

According to Reuters, Brent futures fell 66 cents as of 13:12 GMT to $95.89 a barrel away from November highs, and that's the November futures.

As for Brent December futures, they fell 65 cents to $93.71 a barrel.

US crude futures fell 76 cents to $92.92 a barrel away from $95 scaled earlier, the highest since August 2022. 

The recent surge were due to lower supplies and reduced inventories.

However as Brent prices approach $100, concerns are increasing that global central banks will likely keep interest rates high to combat inflation, in turn harming the economy.

Recent US data showed crude stocks tumbled 2.2 million barrels last week to 416.3 million barrels.

The decline came after Both Saudi Arabia and Russia extended their voluntary production cuts until the end of the year. 

Dollar held ground near 10-month highs against a basket of major rivals, as investors continue to analyse positive data and recent bullish remarks by Fed Officials. 

Minneapolis Fed President Neil Kashkari said there's a 40% chance the Fed will need to raise interest rates once more to combat inflation.

Fed Chair Jerome Powell is expected to speak later on Thursday and provide clues on the future path of US monetary policies. 

Fed officials continue to state fairly bullish forecasts as the US economy proves its resilience despite tight policies. 

The dollar index is now hovering around 106.58, approaching 106.84, the highest since November 30.

US 10-year treasury yields hit a new peak at 4.462%, the highest since October 2007.

As for yen, it traded at 149.48 against dollar away from an 11-month low at 149.71, but still close to the critical barrier at 150. 

Yen was heavily impacted recently by higher oil prices which recently hit 2023 highs following the steep decline in US crude stocks. 

Higher US interest rates also hurt the Australian dollar which traded near 0.6357 against US dollar after a tumble to 0.63320 at night, with traders now awaiting Australian retail sales data.