Dollar steadies near two-month high as central banks shift policy across Europe and Asia
The U.S. dollar lingered close to a two-month peak after strong U.S. data sparked expectations of further Fed hikes, while the Swiss franc slipped and the Norwegian krone rose on recent rate moves.
The greenback held near a two-month high on Thursday after a surge fueled by strong U.S. business activity data and the Federal Reserve’s indication of possible additional rate hikes. Two-year Treasury yields rose to their highest since May 2024, reflecting heightened inflation concerns. In Europe, the Swiss National Bank left its policy rate unchanged but reiterated a willingness to act in the foreign-exchange market, causing the franc to drop 0.32% to its lowest since May 2025.
Norway’s central bank raised its key rate to 4.50% and hinted at further hikes, lifting the krone 0.57% against the dollar. The euro slipped to $1.1369, a two-month trough, while the yen stayed around 158.38 per dollar after Japanese Finance Minister Satsuki Katayama affirmed the possibility of coordinated intervention with the United States.
Why it matters
Currency moves affect import costs, inflation and global investment decisions for businesses and consumers.
How this story developed
- Sep 17 Bank of Japan to lift rates to 31-year high amid yen and inflation pressures
- Sep 18 The BoJ is scheduled to raise its policy rate to 1.25% on Friday.
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