Dollar rises to one-year high on Fed hike bets; yen hovers near 40-year low
Key takeaways
- Dollar rises to one-year high on Fed hike bets; yen hovers near 40-year low FILE PHOTO: U.S. dollar banknotes are seen in this illustration taken March 24, 2026.
- "Right now, the dollar is pricing in higher rates and is gaining on that," said Tommy von Bromsen, FX strategist at Handelsbanken.
- "It s also getting support from the Middle East conflict not being totally resolved.
Dollar rises to one-year high on Fed hike bets; yen hovers near 40-year low FILE PHOTO: U.S. dollar banknotes are seen in this illustration taken March 24, 2026. REUTERS/Dado Ruvic/Illustration/File Photo · Reuters By Samuel Indyk and Jiaxing Li Tue, June 23, 2026 at 6:11 PM GMT+7 3 min read DX-Y.NYB JPY=X CL=F By Samuel Indyk and Jiaxing Li
LONDON, June 23 (Reuters) - The U.S. dollar rose to its highest level in more than a year on Tuesday as traders positioned for a more hawkish Federal Reserve despite oil prices inching lower on ebbing Gulf tensions, while the yen strengthened after flirting with a four-decade low.
Fed funds futures are pricing in more than an 85% chance of a quarter-point rate hike by September, while BofA Global Research and Deutsche Bank abandoned prior forecasts for steady policy and now expect the Fed to raise rates within the year, citing economic resilience.