Dollar Hits New High on Fed Hike Bets, Yen Weakens

Asian currencies were mixed on Friday, but the Japanese yen weakened for the second day in a row. The dollar rose to its highest level since September 7, driven by expectations of higher interest rates from the Federal Reserve.

The Fed funds futures were pricing a 71.3% probability of a 25-basis-point rate hike at the upcoming meeting on September 15-16, up from 61.2% in the previous session.

Meanwhile, the yen's sharp decline over the past month has left it sensitive to both the BOJ's guidance and the Fed's decision.