Dollar’s Strength Could Persist on U.S. Rate-Rise Prospects

A facts-only brief, written by a local AI model from this article in The Wall Street Journal, November 11, 2026. It may contain mistakes, and it is not the article: the full story is at wsj.com.

The U.S. dollar climbed to a four-week high against a basket of currencies as markets increased bets on a Federal Reserve interest-rate hike in December. This move followed Tuesday’s release of higher-than-expected U.S. inflation data, which showed consumer prices rising 0.4% in October. ING’s Chris Turner stated that the currency is likely to remain firm in the near term due to an accelerating labor market and core inflation well above target. He predicted the DXY index could rise above resistance levels at 102.850-103.000 in the coming weeks.

Background

• DHF Capital’s Bas Kooijman noted that further dollar gains may require stronger market expectations for a 50-basis-point rate increase rather than the currently priced 25-basis-point move.
• MUFG’s Derek Halpenny suggested the euro could fall below $1.1000 if the Fed implements a sharp rate increase, while the Swiss franc weakened to a two-week low on heightened U.S. rate-hike prospects.
• Convera’s Antonio Ruggiero expected sterling to remain supported by high U.K. government bond yields, though he noted limited scope for further rallies as expectations are already priced in.
• Asian currencies broadly softened against the dollar, with the Australian dollar trading near seven-month lows as Fed hawkishness reinforced views against sustained dollar weakness.

Read the full article at wsj.com

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