Dollar rises to 19-month high as Fed hike bets grow, yen softens

The US dollar reached its strongest level against major currencies since April 2025 on Thursday, with the dollar index gaining 0.15% to 103.02, Business Recorder reported. Investors increased expectations of further Federal Reserve rate increases after October inflation exceeded forecasts and US officials signalled concern about persistent price pressures.

The dollar rose 0.04% to 159.83 yen after briefly retreating, leaving it near the 160 threshold. A Bank of Japan policymaker argued against raising rates soon, while Japan’s annual wholesale inflation accelerated to 7.1% in October from 6.8% in September; analysts in a Reuters poll expect a possible BOJ increase as soon as next month. The euro gained 0.06% to $1.1096, while sterling lost 0.1% to $1.3266.