13 November 2026: The US dollar climbed to its strongest level in about 19 months this week as hotter-than-expected inflation data pushed traders to bet heavily on another Federal Reserve rate hike. The rally drove the Japanese yen close to the closely watched 160 level, drawing a fresh warning from Tokyo.
Key points:
- The US dollar index (DXY) rose to around 103, its highest since April 2025, according to CNBC.
- USD/JPY traded near 159.6, close to the 160 level that has previously triggered Japanese intervention.
- Japan’s top currency diplomat, Atsushi Mimura, warned it was “too early to forget” the possibility of intervention.
- EUR/USD slipped to around 1.11 and GBP/USD to about 1.33.
Why the dollar is rising
The trigger was October’s CPI report, which showed prices rising faster than expected. That pushed US Treasury yields sharply higher, with the 10-year briefly topping 5%, and moved markets to price a December Fed hike as nearly certain. Higher US interest rates make the dollar more attractive to hold. Read: Hot CPI sends Treasury yields soaring.
The yen: why 160 matters
The yen is especially sensitive because Japanese interest rates remain far below US rates, so the gap between them keeps pressure on the currency. Japan has stepped into the market before to support the yen, and earlier this period coordinated action briefly pushed the dollar down towards 155 yen from levels near 164, according to Investing.com. Mimura’s comments this week briefly knocked USD/JPY lower, a reminder that intervention can cause sudden, sharp moves.
| Currency pair | Approximate level, 12 Nov | What is driving it |
| US Dollar Index (DXY) | ~103 | Fed hike bets, higher US yields |
| USD/JPY | ~159.6 | US–Japan rate gap; intervention risk |
| EUR/USD | ~1.11 | Stronger dollar; ECB on hold |
| GBP/USD | ~1.33 | Stronger dollar despite the BoE’s hike to 4% |
Levels vary between sources and during the trading day.
What it means for forex traders
- Intervention risk: if Japan intervenes, USD/JPY can drop several yen in minutes. Wide stops and small positions are essential.
- Fed meeting: the 8–9 December decision, and whether it is a 0.25% or 0.5% hike, will be the next big driver.
- Data: upcoming US retail sales, jobs and inflation figures can strengthen or reverse the trend.
- Learn the basics: new to the dollar index? Read our guide What is the US Dollar Index (DXY)?.
For context on other central banks, see the Bank of England’s hike to 4% and the RBA’s move to 4.85%.
Risk warning: Trading forex, CFDs and other leveraged products carries a high level of risk, and you could lose money rapidly. Market figures in this article are based on reports available at the time of writing and may change. This article is for information only and is not investment advice.
Sources
- CNBC: Dollar rises to 19-month high as Fed hike bets grow
- Reuters via Investing.com: Dollar near one-month high as yen edges toward 160
- Investing.com: Asia FX holds losses as dollar hits 19-month high
- FXStreet: Forex Today – US inflation is back
- FXStreet: EUR/USD price forecast
Abdullah Munir