Muscat: The dollar rose today, while the yen's advance stalled, as markets awaited interest rate decisions from the US Federal Reserve and the Bank of Japan this week, amid waning risk appetite as oil prices climbed above $100 per barrel.

According to Oman News Agency, the dollar index increased by 0.23 percent to 99.34 points. Meanwhile, the euro decreased by 0.28 percent to $1.1565, and sterling was recorded at $1.3503. The European Central Bank had recently raised interest rates, cautioning about the potential for further increases, while the Bank of England is anticipated to maintain its rates on Thursday.

US Treasury yields have stayed near multi-year highs, with the two-year yield reaching 4.61 percent after a 26 basis point rise last week. In Japan, the yen dropped by 0.3 percent to 154.03 against the dollar, yet it remains close to its seven-month high of 152.89 achieved last week.

The yen has appreciated approximately four percent since the beginning of September, propelled by expectations that the Bank of Japan will quicken its rate hike pace. This is coupled with the possibility of Japanese investors repatriating some of their assets. Brent crude futures saw a two percent increase, reaching $106.7 per barrel, driven by rising supply concerns after new regional attacks and the shutdown of a major Saudi oil pipeline.

There is speculation that the Bank of Japan might adjust to raising interest rates quarterly, as opposed to its previous schedule of roughly every six months.