The dollar approached its highest levels in three months against other major currencies on Wednesday, after data unexpectedly revealed a rise in inflation in the United States, leading to a retreat in bets that the Federal Reserve would begin cutting interest rates. The dollar surpassed the 150 yen level for the first time since November, prompting Masato Kanda, Japan's top currency official, to signal potential intervention if the yen's "rapid" and "dangerous" declines continue.
The yen's price against the dollar is influenced by long-term U.S. Treasury yields, which rose overnight and reached a new two-and-a-half-month high of 4.332% on Wednesday. The dollar has gained nearly 10 yen since the beginning of this year. The dollar index, which measures the currency's performance against six major currencies, including the yen, euro, and British pound, rose to 104.77, remaining close to the three-month high recorded on Tuesday at 104.96.
The euro stabilized at $1.0714 after dropping to a three-month low of $1.07005 at the end of trading yesterday. The British pound saw little change, standing at $1.25995 after falling about 0.3% on Tuesday. This remains well above its recent lows, with strong economic data in the UK indicating that the Bank of England is likely to be slower than its major counterparts in cutting interest rates. The Australian dollar edged up 0.19% to $0.6466, recovering somewhat after dropping to a three-month low of $0.6443 at yesterday's close.
In the cryptocurrency market, Bitcoin recovered some losses after briefly dropping below $50,000 to approximately $48,325 at yesterday's close, reaching $49,580.
