Dollar near two-week high as Warsh boosts rate-hike bets; yen slips past 160

Consumers and exporters feel the pinch as the U.S. dollar spikes to a two‑week peak, making imports more expensive and widening the gap with the yen, which has slipped past the 160 per dollar mark. The sudden strength runs contrary to expectations that softer data might have eased the greenback, leaving markets scrambling to adjust pricing and hedging strategies. FXStreet highlighted that Warsh’s remarks have revived expectations of another hike, while Reuters linked the currency move directly to the renewed rate‑hike narrative.

European equities have already felt the ripple, with Seeking Alpha noting a slip in European markets as the hawkish tone weighs on sentiment. Evidence across the coverage shows the dollar holding near $1.16 against the euro and the yen falling past 160, as detailed by Reuters and the weekly forecast on FXStreet. TradingView flagged the upcoming U.S. jobs report as a test for the dollar’s momentum.

The open question remains whether the Fed will confirm a September hike or temper expectations amid the lingering inflation pressure.