Tim Baker, a macro strategist at Deutsche Bank, said he is not convinced the pair "will keep falling or even stay here for long," he argued.

"The cross may well be high relative to rates, but it's actually low relative to a simple model that includes rates, equities and oil."

4. Oil prices rise

Oil prices held onto a second straight weekly gain amid escalating geopolitical tensions. Donald Trump said the U.S. would maintain a naval blockade of Iranian ports, while senior military officials reportedly presented new options for potential action against Iran, underscoring the risk premium in energy markets.

Iran said on Thursday it would retaliate with “long and painful strikes” against U.S. positions if Washington resumes attacks, while reaffirming its claim over the Strait of Hormuz.

5. OpenAI dismisses concerns

In corporate developments, OpenAI pushed back on concerns about missing internal targets, with its CFO citing strong execution and “a vertical wall of demand.” Separately, S&P Dow Jones Indices launched a consultation that could accelerate the inclusion of newly public mega-cap companies into its benchmarks.