Every few trading sessions, the yen jolts higher against the dollar, and then it suddenly drops.

Market participants and economists said the rise in yields reflects growing concerns that higher oil prices could raise inflation and weaken the rupee, although they remain divided on whether the Reserve Bank of India would actually raise the repo rate.

Emerging-market assets tumbled Friday on renewed concern the conflict in the Middle East would push up inflation worldwide, forcing central banks to pursue higher interest rates and triggering a flight to the dollar.

Credit investors enticed by high yields are buying up corporate bonds, shrugging off the lingering Middle East conflict and focusing instead on robust results from blue-chip businesses.

GLOBAL-FOREX/ (UPDATE 6, GRAPHICS):FOREX-Dollar climbs for fifth straight day as Treasury yields surge