Dollar Extends Fall as Yen Rallies Further

2026-09-09 07:08 By Jam Kaimo Samonte 1 min. read

The dollar index fell to around 98.6 on Wednesday, sliding for the third straight session to its weakest level in four months, attributed mainly to the yen’s rapid rise.

The yen extended gains as US Treasury Secretary Scott Bessent warned traders on betting against the currency, saying he has “pretty good insight” on what the Bank of Japan will do when he is making a call and intervening with the yen.

Investors also braced for key US inflation readings this week that could provide further clues on the Federal Reserve’s policy outlook ahead of next week’s meeting.

Markets are currently pricing in roughly a 60% chance of a 25-basis-point Fed rate hike following stronger-than-expected jobs data released Friday.

The European Central Bank and Bank of Japan are likewise expected to tighten monetary policy this month.

Meanwhile, oil prices continued to rally on escalating hostilities in the Middle East, heightening inflationary risks and boosting rate hike bets.



News Stream
Dollar Extends Fall as Yen Rallies Further
The dollar index fell to around 98.6 on Wednesday, sliding for the third straight session to its weakest level in four months, attributed mainly to the yen’s rapid rise. The yen extended gains as US Treasury Secretary Scott Bessent warned traders on betting against the currency, saying he has “pretty good insight” on what the Bank of Japan will do when he is making a call and intervening with the yen. Investors also braced for key US inflation readings this week that could provide further clues on the Federal Reserve’s policy outlook ahead of next week’s meeting. Markets are currently pricing in roughly a 60% chance of a 25-basis-point Fed rate hike following stronger-than-expected jobs data released Friday. The European Central Bank and Bank of Japan are likewise expected to tighten monetary policy this month. Meanwhile, oil prices continued to rally on escalating hostilities in the Middle East, heightening inflationary risks and boosting rate hike bets.
2026-09-09
Dollar Steadies as Oil Prices Climb
The dollar index steadied around 98.8 on Wednesday, pausing its recent decline as rising oil prices intensified inflation concerns and strengthened expectations for a Federal Reserve rate hike. Oil prices extended their gains after US forces destroyed five Iranian crude tankers near Kharg Island in retaliation for attempted missile attacks on a US warship. Investors are also awaiting key US inflation data this week, which could provide further clues on the Federal Reserve’s policy outlook ahead of next week’s meeting. Markets are currently pricing in roughly a 60% chance of a 25-basis-point Fed rate hike following stronger-than-expected jobs data released Friday. The European Central Bank and Bank of Japan are likewise expected to tighten monetary policy this month. Meanwhile, the dollar remained pressured against the yen after Treasury Secretary Scott Bessent warned traders against betting on further weakness in the Japanese currency.
2026-09-09
Dollar Weakens as Yen Gains
The dollar index slipped to around 98.8 on Tuesday, declining for a second consecutive session as the yen extended its gains on expectations of more aggressive monetary tightening by the Bank of Japan and continued unwinding of carry trades. In the US, investors turned their attention to inflation data due this week, which could provide greater clarity on the interest rate outlook ahead of the Federal Reserve’s policy meeting next week. Markets are currently pricing in roughly a 60% probability of a 25-basis-point Fed rate hike next week following stronger-than-expected jobs data released on Friday. The European Central Bank is also expected to raise interest rates this week. Meanwhile, investors continued to track developments in the Middle East as renewed US-Iran fighting pushed oil prices higher, keeping inflation risks firmly in focus.
2026-09-08