The dollar index rose 0.29% to 103.17, its highest level since April 2025, as strong US inflation data and hawkish Fed remarks lifted Treasury yields. Traders priced in an almost 85% chance of a December rate hike.
The dollar rose against major currencies on Thursday, reaching its highest level in about 19 months as investors pushed Treasury yields higher after reassessing the Federal Reserve’s interest-rate path. Fed officials warned inflation remained elevated, with some signaling openness to a 50-basis-point increase if price pressures did not ease; strong US inflation data reinforced expectations for further tightening.
The dollar index was up 0.29% at 103.17, its highest since April 2025. The two-year Treasury yield rose 13.96 basis points to 4.867%, and the 10-year yield added 12.39 basis points to 5.113%. The euro fell 0.32% to $1.1055, while the dollar rose 0.26% against the Swiss franc to 0.835.
Japan’s yen weakened 0.13% to 159.975 per dollar, as the country’s top currency diplomat warned it was “too early to forget” past intervention. Japan’s annual wholesale inflation accelerated to 7.1% in October from 6.8% in September. The Australian dollar fell 0.59% to $0.6807, and the New Zealand dollar lost 0.27% to $0.5547.
