Currencies
Dollar Soars to Fresh 2024 High as Fed Diverges From Major Peers
- Greenback’s gain pressures yen, which hits lowest since 1986
- Fed has held interest rates even as other central banks cut
This article is for subscribers only.
The dollar rose to its highest level since November amid speculation that the Federal Reserve will break with other central banks by keeping interest rates elevated, giving global investors an incentive to shift cash to the US to capture higher bond yields.
The Bloomberg Dollar Spot Index climbed as much as 0.4% to a nearly eight-month high, extending the currency’s advance this year as the Fed’s policy leaves a wide interest-rate gap with other major economies. That difference has been particularly pronounced with Japan, driving the yen to the weakest since 1986 and sparking risks of another intervention by the Japanese authorities.