Dollar hits 19-month high on Fed hike bets, yen nears 160
The dollar hit a 19-month high against major currencies on Thursday as traders increased bets on further Federal Reserve rate hikes, while the yen weakened toward 160 per dollar after a dovish Bank of Japan official's speech. Stronger-than-expected October inflation data and hawkish remarks from Fed officials fueled expectations of another rate increase, with some brokerages like Goldman Sachs predicting a hike early next year in addition to one in December. The dollar index rose 0.15 percent to 103.02, its highest since April 2025. The yen traded at 159.83 per dollar, supported by wide interest-rate differentials, despite a brief respite from a Japanese official's intervention warning. Japan's wholesale inflation accelerated to 7.1 percent annually in October, reinforcing expectations for a BOJ rate hike as soon as next month.