US dollar climbs against major currencies on rate hike expectations

The US dollar rose against most major currencies on Thursday, extending gains after the release of inflation data and hawkish remarks from Federal Reserve officials the previous day.

These developments boosted market expectations that US interest rates could be raised next month.

The dollar gained 0.69% to 159.83 yen, reaching its highest level in more than two months and approaching the psychologically significant 160-yen mark.

The euro fell 0.61% to $1.11, extending losses from the previous session and hitting its lowest level since May 2025.

The British pound also slipped 0.47% to $1.33, nearing a two-week low, while the dollar advanced 0.86% to 0.832 Swiss francs after touching its strongest level since mid-October.

The dollar index, which tracks the greenback against six major peers, rose 0.63% to 102.85, its highest since April 2025.