The rupee remains resilient holding gains, however is likely to face headwinds on Friday from a flight to safety that's weighing on risk-sensitive currencies and rising oil prices which threaten to spur increased hedging by importers. It had climbed to a more than six-week high near 94.30 in the previous session before reversing course. The dollar index , which measures the greenback against a basket of currencies, was at 101.52, after touching its lowest level since the beginning of the month at 101.44 on Thursday. US 10-year Treasury yields hovered near a one-month low at 4.953%, after tumbling on Thursday when equities sold off on renewed concerns about the sustainability of the AI boom, burnishing the safe-haven appeal of sovereign debt. Brent futures pushed above $114 per barrel, extending a 4% climb from the previous session after Houthi attacks in Saudi Arabia stoked concerns of further disruption to energy supplies from the region. The Japanese yen hit its strongest level in more than a month on Friday, buoyed by safe-haven flows due to a fresh bout of risk aversion that also sent US Treasury yields sharply lower, pushing the dollar to a nearly three-week trough. The moves in the currency markets were driven by doubts over the AI spending boom even as Brent crude futures stay above $110 per barrel, suggesting concerns over economic growth outweighed inflation worries. The yen strengthened 0.3% on Friday to 156.28 per dollar, leading gains among major currencies. It was set for a 1% gain for the week, its strongest weekly rise since early September. AI jitters favour the yen, Middle East tensions support the Canadian dollar and Norwegian crown due to rising oil prices, while French fiscal stress benefits the Swiss franc, they said, adding that for the US dollar, AI had become an increasingly two-way macro risk. The Japanese yen posted its strongest daily gain in almost a month on Thursday, ahead of the Bank of Japan's policy meeting next week. Worries about France's ability to tackle its huge debt burden have hurt French government bonds and raised concern about other heavily indebted euro-area countries, weighing on the euro. Gold eased on Friday, headed for its steepest weekly decline in over four months as elevated oil prices bolstered higher-for-longer interest rate expectations, while investors awaited next week's Federal Reserve policy meet. Spot gold eased 0.2% to $4,016.27 per ounce by 0351 GMT, paring losses slightly after touching its lowest level since July 20 earlier in the session. The metal has fallen 3.5% so far this week, which is poised to be its worst since June. Oil prices rose about 4% to a five-month high on Thursday after Houthi attacks on Saudi Arabia stoked concerns of further disruption to energy supplies. Elevated energy prices bolster expectations of higher-for-longer interest rates by the Fed, increasing the opportunity cost of holding non-yielding bullion. Traders are largely expecting the central bank to leave interest rates unchanged next week, but expectations for an interest rate hike in December remain at 80%. Among other metals, spot silver slid 1% to $53.98 per ounce, platinum fell 0.1% to $1,568.58 and palladium steadied at $1,054.50. All three metals were headed for weekly declines. www.eforexindia.com......