The dollar soared against high-yielding currencies and Asian emerging markets sank Friday on the prospect of higher US interest rates, with dealers betting Donald Trump's planned huge spending policies will fire inflation.
The dollar tumbled more than three percent against the yen while the Mexican peso sank to a record low on Wednesday, as Republican Donald Trump took a shocking lead in the fiercely-contested US election.
Oil prices rose nearly 3% on Thursday, extending their rally on optimism over Opec's first output cut plan in eight years.
Oil extended losses in Asia Tuesday as a stronger US dollar and progress in controlling wildfires in Canada's crude-producing Alberta province dampened prices.
Oil prices fell by around one percent on Friday as a stronger dollar weighed and Russia warned that a global crude supply overhang could last into next year.
Airfares are expected to fall further in the near future as prior declines in jet fuel prices feed through, IATA said but noted that the biggest stimulus to demand from oil prices appears to be over.
Oil markets steadied on Thursday after scaling 2016 highs for a third day in a row on the back of a weak dollar as investors looked beyond record high US crude inventories and relentless pumping by major producers.
Crude oil futures extended gains from the previous session on Thursday as a weaker dollar and unconfirmed talk of producers potentially meeting to discuss output cuts lifted the market despite record US stocks due to overproduction.
