Dollar Rises Amid Yen Weakness, Rate Hike Speculation

The U.S. dollar is poised to extend its bull run, buoyed by high Treasury yields and a cautious outlook for U.S. rate cuts, despite a recent dip against the yen triggered by Japan's Finance Minister warning of possible intervention. After a recent drop to 154.30 yen, the dollar rebounded to 155.09 yen following comments from Bank of Japan Governor Kazuo Ueda, who hinted at gradual interest rate hikes but did not specify a timeline for a potential December increase. Market expectations suggest a 54-55% chance of a quarter-point hike at the BOJ's upcoming meeting on December 19. The euro remains near a one-year low at $1.0530, reflecting the yen's volatility and the dollar's strength, which has risen 1.6% over the week amid significant swings in 10-year Treasury yields. Analysts predict further dollar appreciation as the U.S. economy is expected to outperform major peers, although caution remains due to the unpredictable impact of Donald Trump's return to the White House on Fed policy. Overall, the dollar index remains strong, having reached a one-year high of 107.07.