Dollar holds near one-month high as yen approaches 160

The dollar held near a one-month high against major currencies on Thursday, driven by expectations of further Federal Reserve rate hikes, while the yen approached the key 160-per-dollar level. The dollar index rose 0.63 percent to 102.85, its strongest since October 14. Traders increased bets on Fed tightening after stronger-than-expected October inflation data and hawkish remarks from US central bank officials, who left open the possibility of a larger 50-basis-point increase. Goldman Sachs and other brokerages now expect another hike early next year, in addition to one in December. New York Fed President John Williams is scheduled to speak later Thursday. The yen softened 0.12 percent to 159.58 per dollar, supported by wide interest-rate differentials. Bank of Japan board member Toichiro Asada, a dovish dissenter, is due to speak, with his stance potentially affecting currency moves. Japanese wholesale prices rose 7.1 percent year-on-year in October, up from 6.8 percent in September.