Fed Rate Hike Expectations Drive USD to 19-Month High; JPY Nears Intervention Red Line

English summary

Driven by hawkish Fed comments and strong inflation data, the Dollar Index rose 0.22% on Friday to 103.40, hitting a 19-month high. The 2-year US Treasury yield climbed to 4.87%, reinforcing the dollar's carry advantage. The Yen fell against the dollar, touching a two-month high of 160.18, with Japan's Finance Minister warning of appropriate responses to volatility amid rising expectations for a BOJ rate hike in December. Non-US currencies like the Euro and AUD faced broad pressure.