The United States (US) dollar continued to strengthen against most major global currencies during trading on Thursday (November 12, 2026), bolstered by growing expectations of a Federal Reserve interest rate hike following US inflation data that exceeded forecasts.
The US Dollar Index (DXY) rose by approximately 0.30% to 103.16, nearing a 19-month high. This reflects the dollar's increasing appeal amid a US monetary policy stance expected to remain restrictive.
The strengthening of the "greenback" has pressured several major currencies. The euro weakened by 0.73% to US$1.1073, while the pound sterling fell 0.61% to US$1.3254. The US dollar also gained against the Japanese yen, with the USD/JPY pair reaching 159.85—edging closer to the psychological 160 level, which has heightened concerns regarding potential currency intervention by Japanese authorities. Meanwhile, the Australian dollar slipped to US$0.6830, and the Canadian dollar also faced downward pressure amid shifting sentiment in global energy markets.
The dollar's dominance was reinforced by US consumer inflation data for October, which rose 0.4% month-on-month—surpassing the 0.3% forecast. These results have strengthened investor conviction that the Federal Reserve still has room to continue raising interest rates in December. Expectations for a tighter policy stance have also supported US government bond yields, making dollar-denominated assets more attractive compared to those in other currencies.
Market participants are now awaiting the release of US producer price index (PPI) data on Friday (November 13, 2026) for further clues regarding the future direction of monetary policy. If the PPI exceeds expectations once again, the dollar could potentially sustain its gains, while the euro, pound sterling, and other currencies may face continued pressure. Conversely, lower inflation data could pave the way for a correction in the dollar and a recovery for other major global currencies.
Source: Newsmaker.id