Dollar hits 19-month high on Fed hike bets; yen wavers in Tokyo

channelnewsasia.com —

The dollar hit a 19-month high against major currencies on Thursday as traders increased bets on further Federal Reserve rate hikes following stronger-than-expected inflation data and hawkish comments from US central bank officials. The dollar index rose 0.11 percent to 102.98, the highest since April 2025, while the euro fell to its lowest level since May last year. Goldman Sachs and other brokerages now expect another hike early next year in addition to one in December, with a possible 50-basis-point increase left open. The yen wobbled after Bank of Japan board member Toichiro Asada pushed back against near-term rate hikes, while Japan's top currency diplomat Atsushi Mimura warned of intervention risks. Japan's wholesale inflation re-accelerated to 7.1 percent in October, supporting expectations for a BOJ hike as soon as next month.


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