Dollar hits 19-month high as yen nears 160, Fed hike bets rise
The dollar hovered near a 19-month high on Friday as traders increased bets on a larger Federal Reserve rate hike, pushing the Japanese yen back toward the key 160-per-dollar level and keeping markets alert for possible intervention. Treasury yields surged after President Donald Trump said the US does not need a deal with Iran, with two-year yields posting their sharpest two-day rise in 3-1/2 years. Fed officials warned inflation remains elevated, and traders now price a 14.5% chance of a 50-basis-point hike next month, up from zero last week. The euro fell 0.8% for the week, its largest loss since late September, while the Australian dollar dropped 2.5% over the past month, the worst G10 performer. Investors also watched tech stock upheaval following Nvidia CEO Jensen Huang's departure, with some strategists noting equity selloffs could temper dollar gains.