A broad rally lifted the US dollar against most major currencies as Treasury yields and oil prices pushed higher. The advance comes days before a Federal Reserve rate decision that Wall Street Journal writer Nick Timiraos describes as one of the most uncertain in years.
The US dollar climbed broadly as the 2-year and 10-year Treasury yields rose 5–6 basis points to levels last seen in early 2025. Oil traded above $91.50, up close to 5%, and equities slipped, with the Nasdaq down 1.6% and the S&P 500 and Dow both off 1%. Traders followed the shift toward higher yields and safe-haven demand.
USD/JPY hits four-year highs
Against the yen, USD/JPY pushed to fresh four-year highs, closing in on 164.00, with the next major upside target near 164.50 — a level last seen in the 1986 swing highs. The Swiss franc also gave ground, as USD/CHF reached its highest level since July 2025 and traded within a resistance zone between 0.8170 and 0.8214, with the day’s high at 0.8177.
Not every currency followed
But the advance was not uniform. The Australian dollar came under pressure, testing support between 0.6962 and 0.6978 after a session low of 0.6968. The New Zealand dollar was one of the weakest majors, falling about 0.70% to a low of 0.5770.
USD/CAD, by contrast, traded little changed, holding above its nearly converged 100- and 200-hour moving averages near 1.4065.
A close-call Fed meeting
The gains build ahead of a Federal Reserve rate decision due Wednesday at 2 PM ET. Timiraos says the call has become close. Renewed fighting involving Iran has lifted oil prices and strengthened the case for a hike. Softer June inflation data argue for holding. Core inflation remains above the Fed’s 2% target despite recent improvement. Markets price a 40% chance of a rate hike at the September meeting. New Fed Chair Kevin Warsh remains the biggest wildcard, having given no indication which way he is leaning.
Sources: Investinglive, Investinglive
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