Dollar Holds Near Two-Month High Amid Mixed Signals from BOJ

The US dollar continued its upward trend on Thursday, reaching a two-month high as investors await the Federal Reserve's next move. Despite weaker-than-expected US inflation data, which reduced expectations for an October Fed hike, Treasury yields remain elevated.

The greenback's strong performance in September, which saw it rise by about 2%, has been driven by the Fed's renewed focus on inflation. This shift in policy has pushed up US rate expectations and Treasury yields.

Asian currencies were mixed as a result of these developments. The Japanese yen was among those to weaken, falling to a two-week low against the dollar after the Bank of Japan's latest policy summary offered mixed signals on future rate hikes.