New york: The dollar today climbed to its highest in more than two weeks as hawkish signals from the Federal Reserve and a surge in oil to four-year highs intensified inflation fears, while the yen's break above 160 per dollar sharpened intervention risks. The dollar index climbed 0.2% to a high of 99.06, the strongest level since 13 April 2026. Still, the greenback is on track for a 0.8% loss this month after two monthly gains, as markets had earlier priced in optimism over a potential resolution to the Iran conflict.

According to Oman News Agency, the euro weakened to a near three-week low of $1.1661, and sterling was down 0.1% to trade at $1.3463. The Australian dollar fetched $0.712, and the New Zealand dollar was at $0.5828, largely steady. The Bank of England and European Central Bank will also meet later today, with markets closely watching their guidance as expectations grew that both may be forced to raise rates soon.

The yen weakened to a fresh low since July 2024 at 160.58 per dollar, edging closer to levels that have previously triggered intervention, despite the Bank of Japan signaling after its policy meeting on Tuesday that it could raise rates in coming months.