Dollar near 19-month high on Fed hike bets, yen tests 160

Detailed summary

SHANGHAI/SINGAPORE, Nov 13 (Reuters) - 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…

SHANGHAI/SINGAPORE, Nov 13 (Reuters) - The dollar held near a 19-month high on Friday, set for its best weekly gain in two months, as bets on a larger rate hike drove US yields higher, pushing the Japanese yen back near the key 160 mark that has left traders on alert for intervention.

Treasury yields rose as President Donald Trump's comment that the US did not need a deal with Iran stoked worries about Middle East supply, lifting oil prices and, with them, inflation expectations. The move added to pressure from data this week showing US inflation remained a concern, leaving traders weighing the chance of a larger-than-usual Federal Reserve rate hike next month.

Two-year Treasury yields have gained 34 basis points over the past two sessions, the sharpest two-day rise in 3-1/2 years. They were last at 4.8602%.

The euro edged up 0.1% to $1.1059, just above its lowest level against the dollar since April 2025. For the week, it was down 0.7%, on track for its largest weekly loss since late September.

Fed officials this week warned that US inflation remains stubbornly elevated, with some signalling openness to a 50-basis-point rate increase if price pressures fail to ease. Traders are pricing in a 14.5% chance of a large hike next month, up from 0% last week, the CME FedWatch tool showed.

Investors are also keeping an eye on upheaval in technology stocks in the wake of Nvidia CEO Jensen Huang's departure, in a sector already pressured by funding and regulatory concerns.

"If we do see a further sharp selloff in equity markets, that could be a negative for the US dollar," said Carol Kong, currency strategist at Commonwealth Bank of Australia.

"But I think there's a possibility it can continue its strong momentum in the near term, particularly with Fed officials speaking next week. If we see further support for a 50-basis-point hike, there's further upside in the dollar too."

The dollar index, which measures the greenback against a basket of currencies, was at 103.18, holding near…

Opening of the article, excerpted from Euronext. To read the rest, open the article on the publisher's site.