Dollar strengthens to a six-month high after hawkish Fed signals

The dollar index reached 100.29, its highest level in six months.

Fed minutes showed policymakers opposed further rate cuts, and traders now see only a 33–35% chance of a December cut.

Sharp fall in the Japanese yen

The yen weakened to 157.78 per dollar, its lowest since January. Japanese officials warned against “rapid, one-sided moves” and raised the possibility of intervention if the rate approaches 160.

Pressure on the euro, sterling and dollar-priced commodities

The stronger dollar has weighed on the euro and the British pound and made dollar-priced commodities more expensive. Markets are now awaiting US jobs data — delayed by the government shutdown — to gauge the path of monetary policy.