Dollar Soars Near Record Highs as Traders Eye Fed Rate Hike

The US dollar has reached near-record highs as investors await a widely anticipated interest rate hike from the Federal Reserve.

This move comes as Japan's yen slips to around 155.49 per dollar, ahead of central bank decisions in both countries.

Currency markets have been relatively calm despite rising government bond yields, with synchronized movements among major economies keeping differences between their borrowing costs from swinging significantly.

Investors are bracing for a quarter-point Fed hike that would push the policy rate to a 3.75%-4% range, and the key question is whether officials will hint at further tightening or signal comfort with cooling inflation.