The United States (US) dollar strengthened once again against several major currencies in trading on Wednesday (November 11, 2026), driven by growing expectations of a Federal Reserve interest rate hike following US inflation data that exceeded forecasts, alongside hawkish remarks from central bank officials.
The US Dollar Index (DXY) rose 0.63% to 102.85, having touched its highest level since April 2025. According to the CME FedWatch Tool, the market now assigns an 87% probability to a 25-basis-point interest rate hike in December—up from approximately 70% a month earlier—as inflationary pressures persist.
The strengthening of the greenback has put pressure on various global currencies. The US dollar climbed 0.69% against the Japanese yen to 159.83, nearing the psychological 160 level and reaching its strongest position in over two months.
The euro weakened by 0.61% to US$1.11, its lowest level since May 2025, while the pound sterling fell 0.47% to US$1.33. The dollar also gained 0.86% against the Swiss franc, reaching 0.832. The divergence in interest rate outlooks between the US and other developed nations is a primary factor bolstering demand for the dollar, in addition to its appeal as a safe-haven asset amid geopolitical uncertainty.
Following the latest inflation data, several financial institutions have begun revising their forecasts for Federal Reserve monetary policy. Goldman Sachs now anticipates interest rate hikes in both December and March, while Deutsche Bank projects tightening in December, January, and March.
Elsewhere in the markets, the Australian dollar weakened slightly to US$0.6852, while Bitcoin rose 0.16% to US$73,890.48. Investors are now closely monitoring inflation trends, statements from Federal Reserve officials, and the risk of currency intervention by Japan, as the USD/JPY pair nears the 160 level.
Source: Newsmaker.id