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    • US Dollar Strengthens on Federal Reserve Rate Hike Expectations

    By on June 23, 2026
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    Dollar Strengthens Amid Rate Hike Expectations, Yen Near Multi-Decade Low

    Hong Kong:  The US dollar strengthened today as investors positioned for a potential Federal Reserve interest rate hike later this year, while oil prices rebounded and US Treasury yields remained elevated.

    The two-year US Treasury yield, which is highly sensitive to interest rate expectations, traded near a 16-month high following gains recorded in the previous session.

    The dollar index, which tracks the performance of the US currency against a basket of major currencies including the euro and the Japanese yen, rose to 101.01, close to its one-year high of 101.13 reached last week.

    The recovery in oil prices also supported the dollar after crude markets rebounded from losses recorded in the previous session amid developments related to US-Iran talks.

    The euro traded at $1.1423, hovering near a three-month low, while the British pound stood at $1.3246.

    The Australian and New Zealand dollars, which are considered sensitive to risk sentiment, declined by around 0.1 percent to $0.6991 and $0.5704 respectively.

    Meanwhile, the Japanese yen traded at 161.59 against the US dollar after briefly touching 161.93 in the previous session, remaining close to its weakest level in decades.

    Investors continue to monitor developments in US monetary policy, global bond markets and energy prices for indications on the future direction of major currencies.

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