Dollar near 19-month high on Fed hike bets, yen tests 160
The US dollar is trading near a 19-month high as investors anticipate a potential Federal Reserve interest rate hike. Meanwhile, the Japanese yen is testing the 160 level, prompting concerns about government intervention to stabilize the currency.
Why it matters
Currency volatility and shifting interest rate expectations significantly impact global trade, investment flows, and the stability of international financial markets.
SHANGHAI/SINGAPORE - The dollar held near a 19-month high on Friday after a strong week of gains on rising bets of a larger Federal Reserve rate hike, pushing the Japanese yen back near the key 160 mark that has left traders on alert for intervention.
Treasury yields rose after US President Donald Trump said the US does not need a deal with Iran and as traders weighed the chance of a larger-than-usual Federal Reserve rate hike next month. Two-year Treasury yields gained 34 basis points over the past two sessions, the sharpest two-day rise in 3-1/2 years.
The euro dropped 0.1% to $1.1049, hovering near its lowest level against the dollar since April 2025. For the week, it was down 0.8%, on track for its largest weekly loss since late September.
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