Dollar hits one-year high on Fed hike bets; yen nears 40-year low

The US dollar index rose to 101.13, its highest level since May 2025, as Fed funds futures priced in more than an 80 percent chance of a rate hike by September, with BofA Global Research and Deutsche Bank now expecting a Fed rate hike within the year. The Japanese yen hovered at 161.48 per dollar, close to a 40-year low, with Japanese Finance Minister Satsuki Katayama holding an online meeting with US Treasury Secretary Scott Bessent on potential currency intervention. The euro fell to a March low of $1.1414 after ECB President Christine Lagarde played down second-round inflation concerns.