Dollar Reaches Nearly 19-Month High as Asian Currencies Come Under Pressure
Stronger-than-expected US inflation in October raised bets on a Federal Reserve rate increase in December. On November 12, the dollar index reached a nearly 19-month high, the yen approached 160 per dollar, and the Indonesian rupiah fell to a record low against the dollar.
The US dollar extended its gains on November 12, with the dollar index rising 0.25% to close near 103.2, its highest level since April 2025. Rising US Treasury yields and expectations of further Federal Reserve rate increases put Asian currencies under broad pressure.
File photo illustrating the stronger US dollar and pressure on Asian currencies.（VietVance）
US inflation data for October, released by the Labor Department on November 10, came in above expectations. According to the Chicago Mercantile Exchange’s FedWatch tool, traders on November 12 were betting on a Federal Reserve rate increase at its December meeting, with the probability of a 0.5 percentage point increase rising to 15%. That day, the 10-year US Treasury yield rose to 5.125%, more than 13 basis points above the previous session; the two-year yield rose to 4.879%.
In currency markets on November 12, the yen fell to 159.98 per US dollar, its lowest level since September. The Philippine peso, Taiwan dollar and Indonesian rupiah also weakened against the dollar, with the rupiah falling to a record low near 18,200 per dollar. The euro fell to $1.10585, and the Australian dollar fell to $0.6808.
As the yen approached 160 per US dollar, a senior Japanese official responsible for currency affairs reminded investors on November 12 that they should not forget this summer’s currency market intervention too soon. On the morning of November 13, the yen was still trading around 159.9 per dollar. Several analysts in a Reuters survey expected the Bank of Japan might raise interest rates in December; Japan’s wholesale inflation rate rose to 7.1% in October from 6.8% in September.
Source: VietVance
