A volatile ride for global markets this week ended calmly on Friday even as lingering worries over Chinese economic growth and the Federal Reserve's plans to raise interest rates weighed on stocks. Oil, however, rebounded sharply for a second day. U.S. crude jumped more than 6 percent as a rally in gasoline prices and air raids in Yemen forced traders to scramble to cover short positions. U.S. crude gained 17.2 percent in two sessions, the second-largest two-day rise in 25 years.
The dollar rose to one-week highs on Friday for a fourth straight session of gains after some Federal Reserve officials did not rule out an interest rate hike next month despite this week's market meltdown. The Dollar Index, a gauge of the greenback's value against six major currencies, rebounded from seven-month lows struck on Monday and posted its largest weekly gain in a month as financial markets calmed down after recent turmoil.
Gold rose on Friday as technical indicators and suggestions the U.S. central bank may delay a rate rise provided support, but the metal was still on track to post its biggest weekly drop in five weeks amid dollar strength and strong U.S. economic data. The gains came as U.S. Federal Reserve officials suggested the central bank may delay tightening monetary policy beyond next month due to turmoil in financial markets. A rate rise would dim the appeal of non-interest bearing assets like gold.