Dollar slips but set for weekly gain on Fed bets; yen rallies
UUP•The dollar index slipped 0.2% to 101.09 on Friday but was up almost 1% for the week, while the yen rose 0.5% to 158.18 per dollar after Japan reiterated its shared stance with the United States on intervention.
1. Dollar and yen moves
The dollar was on track for a second consecutive weekly gain as markets raised bets on higher U.S. interest rates. The dollar index had climbed almost 1% this week to a two-month high before slipping 0.2% to 101.09 on Friday. U.S. Treasury yields rose to their highest in more than 20 years.
2. Japan warns on yen
The yen gained 0.5% to 158.18 per dollar after Finance Minister Satsuki Katayama said President Donald Trump had raised yen weakness during a meeting with Prime Minister Sanae Takaichi. Katayama said the United States and Japan remained committed to the stance behind July's joint intervention and that she would stay in close contact with Treasury Secretary Scott Bessent. The yen was nevertheless on track for a second weekly decline.
3. Other currencies
The euro rose 0.1% to $1.139 but was set for a third weekly loss. Sterling added 0.1% to $1.324, near a three-month low, and was on track for its worst week since June. The Australian dollar rose 0.3% to $0.703; the Reserve Bank of Australia was expected to raise rates by 25 basis points to 4.60% the following week.
