Dollar Weakens as Fed Rate Hike Expectations Rise, Yen Stalls Near 160

The US dollar weakened on Tuesday as investors priced in a greater chance of a Federal Reserve interest-rate hike this month. The dollar index, which measures the currency against six major currencies, fell to 99.37.

This comes after hawkish comments from Fed Chair Kevin Warsh and ahead of key US economic data releases. Investors are now weighing the possibility of rate hikes by both the US Federal Reserve and the Bank of Japan.

The yen hovered near the 160-per-dollar level, gaining support after US Treasury Secretary Scott Bessent called for a stronger yen through interest-rate measures. The yen edged up to 159.81 per dollar, while other major currencies like the euro and sterling were relatively unchanged.