Muscat: Currency markets held steady in cautious trading today as investors weighed the latest surge in oil prices and global bond yields, while the yen's powerful rally paused ahead of US producer price and inflation readings. Brent crude futures remained above $100 a barrel after breaching that threshold on Wednesday.

According to Oman News Agency, fresh inflationary pressures from the energy crisis pushed global bond yields back onto an upward trajectory, with the benchmark 10-year US Treasury yield climbing to its highest since 2023. This movement followed a longer-term bond buyback program that fell short of expectations.

The dollar drew modest support, nudging the euro and sterling slightly lower to $1.1633 and $1.3547 respectively. This shift also halted the yen's ascent to a seven-month peak, with the Japanese currency last trading marginally lower at 153.70, having been confined to a narrow range ahead of an expected rate hike in Japan next week.

Meanwhile, the dollar index, which tracks the US currency against a basket of peers, reached 98.81, edging away from a three-week low. In other developments, the New Zealand dollar rose 0.2 percent to $0.5848, while the Australian dollar steadied at $0.7215.

The offshore Chinese yuan held firm at 6.705 per dollar, hovering near its strongest level in nearly four years after data showed producer and consumer inflation accelerating in China amid rising energy costs.