The dollar index was little changed at around 101.6 on Friday, hovering near three-week lows and down nearly 0.2% on the week. Cautious sentiment persisted amid further gains in oil prices and concerns over a potential escalation of hostilities in the Middle East, while the US midterm elections are now less than two weeks away. Meanwhile, concerns over heavy AI-related spending continued to weigh on sentiment. The Fed is set to announce its monetary policy decision next week, with markets pricing in a roughly 91% probability of rates remaining unchanged. Meanwhile, the probability of a 25bps rate hike in December stood at around 76%. Among major currencies, the Japanese yen strengthened against the dollar, benefiting from its safe-haven appeal. The euro, by contrast, edged lower as political uncertainty in France and continued selling pressure in the country's bond market weighed on the common currency.