Dollar set for biggest weekly gain in two months
TLT•The dollar was on track for its strongest weekly rise in two months, with its index up 0.1% at 103.34 as traders weighed a larger Federal Reserve rate hike next month. The yen hovered near 160 per dollar, while two-year Treasury yields rose about 32 basis points this week to around 4.84%.
1. Dollar firms on rate bets
The dollar was on track for its strongest weekly rise in two months on Friday, holding near a 19-month high as higher US Treasury yields followed stronger-than-expected US inflation data and hawkish comments from Federal Reserve officials. Traders priced in about a 92% chance of a 25-basis-point rate hike next month, CME FedWatch data showed.
2. Yen nears 160 per dollar
The yen was steady at 159.84 per dollar, near its weakest level since early September, and down about 1% this week. Japanese Finance Minister Satsuki Katayama said the government would respond appropriately to currency volatility.
3. Other currencies weaken
The euro fell 0.23% to $1.103 and was on course for a fourth straight weekly loss. The Australian dollar lost 0.46% to $0.678, while the New Zealand dollar declined 0.29% to $0.553. Bitcoin fell 4.73% to $68,126.21 and ether dropped 5.02% to $1,914.61.
