The U.S. dollar rose to its highest level in about 19 months on Thursday as traders bet the Federal Reserve will raise interest rates in December. The dollar index, which measures the dollar against six major currencies, climbed to its highest level since April 2025, according to Reuters data reported by CNBC.
The index was at about 103.2 on Thursday evening, and the dollar was at about 159.9 yen, near the 160 level, after the yen weakened to its lowest level since September. The euro fell to about $1.106, its lowest since April 2025.
Traders put the chance of a December rate increase at about 91%, according to CME Group’s FedWatch tool, as reported by CNBC, after stronger-than-expected inflation data on Tuesday. CNBC also reported that Goldman Sachs expects another increase early next year in addition to one in December.
Japan’s top currency diplomat, Atsushi Mimura, warned traders on Thursday that it is “too early to forget” this summer’s intervention to support the yen, according to the same report.
A stronger dollar makes U.S. exports more expensive abroad and lowers the dollar value of profits that American companies earn overseas.
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