The US dollar index rose today, Wednesday, as Federal Reserve Chairman Jerome Powell did not rule out the possibility of another rate hike by the central bank at its next meeting in July.
Expectations for a 25 basis point rate hike at the July meeting rose to 84.3% from 76.9% the day before.
According to Reuters news agency, the US dollar index rose 0.566%, at 103,080.
The Japanese yen also weakened to its lowest level in 7 months at 144.51 per dollar.
Bank of Japan Governor Kazuo Ueda said, “The central bank will see good reason to change its monetary policy if it becomes reasonably certain that inflation will start accelerating again next year after a period of moderation.”
The weakness of the yen sparked warnings from Japanese currency officials this week that the central bank might intervene to support the yen, something that happened last time when it was trading around 145 for the dollar.
The Japanese yen weakened by 0.32% at 144.51 per dollar, while the euro fell 0.22% against the yen at 157.560, after earlier hitting a new 15-year high of 158.00.
2023-06-28 15:33:00
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