Dollar Extends Gains as Rate-Hike Bets Firm

A facts-only brief, written by a local AI model from this article in The Wall Street Journal, November 13, 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 19-month high against a basket of currencies, reaching 103.277 on the DXY index, as markets increased bets on further Federal Reserve interest-rate hikes. Traders priced in a 90% probability of a 25-basis-point increase and a 10% chance of a 50-basis-point move in December, driven by higher-than-expected U.S. inflation data and comments from Fed Governor Christopher Waller. ING’s Chris Turner noted that strong wholesale inflation data could sustain the narrative of hot U.S. prices, potentially pushing the DXY toward 104.600. Meanwhile, the euro hit a 19-month low of $1.1044, while the yen fell to 159.77 per dollar despite long-term support from Japanese investors shifting funds domestically.

Background

• Commerzbank’s Thu Lan Nguyen stated that French fiscal concerns and political uncertainty ahead of the 2027 presidential election could weaken the euro, leading the bank to lower its end-2027 forecast to $1.06.
• Nguyen also indicated that Japanese investors are moving capital from international markets to domestic assets due to attractive government bond yields, which should support the yen in the long term.
• The dollar’s strength was further supported by rising oil prices following President Trump’s statement that the U.S. did not need a deal with Iran.
• LSEG data showed the euro trading steady at $1.1058 and the dollar flat at 103.174 after reaching its recent peaks.

Read the full article at wsj.com

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