Dollar Index Tops 103 for a Fresh 19-Month High as Euro Slides to $1.106 and Yen Holds Near 160

The U.S. dollar climbed to a fresh 19-month high against a basket of major currencies on Thursday, Nov. 12, 2026, as traders added to bets on Federal Reserve rate increases and the 10-year Treasury yield rose back above 5%. The yen hovered just under 160 per dollar, and the euro slipped further below $1.11.

Dollar index above 103

The dollar index, which measures the greenback against six major currencies, rose 0.26% to 103.14 in late-morning New York trading, Reuters reported. Earlier in the day it had been flat near 102.80 after touching 102.88, then the highest since April 2025, CNBC reported.

The gains followed Tuesday's hotter-than-expected October consumer price index and comments from Fed officials who left open the possibility of a half-point increase. CNBC reported that Fed Governor Christopher Waller said he planned to support a quarter-point increase at the Dec. 8-9 meeting unless core CPI came in at 0.3% or more. Goldman Sachs and some other brokerages now expect another increase early next year in addition to one in December.

"Even if the Fed decides to hike 25 basis points at its upcoming meeting, the risk of stickier near-term inflation argues for hiking at both the December and January meetings with the risk of another in March," PIMCO economist Tiffany Wilding said, as quoted by CNBC.

Francesco Pesole, FX strategist at ING, said the dollar's rally was "firmly rooted in a shift in short-term rate dynamics, driven by hawkish Fed rhetoric and hotter inflation," Investing.com reported. He said the index had returned to levels last seen around the April 2025 "Liberation Day" tariff announcement.

Euro tests new lows

The euro fell 0.25% to $1.1061, according to Reuters. In Asian trading it had reached $1.106675, its lowest level since May 2025, after falling about 1.3% across Tuesday and Wednesday, CNBC reported.

Kenneth Broux, a strategist at Societe Generale, told CNBC that the European Central Bank "is probably going to stop raising rates after the December meeting," adding: "So the spread is going to widen further in favour of the US dollar." ING's Pesole said the euro was at risk of testing $1.1000 in the coming days but that ING expects that level to provide relatively solid support.

Yen near 160 as Tokyo warns

The dollar was up 0.08% at 159.9 yen in late-morning New York trading, Reuters reported. Earlier it had touched 159.945, the highest in more than two months. The Bank of Japan's 5 p.m. Tokyo reading put the dollar at 159.70-71 yen, with a central rate of 159.62, according to the central bank's daily market report.

Japan's top currency diplomat, Atsushi Mimura, warned on Thursday that it was "too early to forget" the government's intervention in the currency market this summer, CNBC reported. Data released Thursday showed Japan's wholesale inflation accelerated to 7.1% in the year to October from 6.8% in September. Many analysts in a Reuters poll expect the next BOJ rate increase as soon as next month, although board member Toichiro Asada said in a speech that premature increases could hurt growth.

Sterling steady after GDP

The British pound was down 0.06% at $1.3271 after data showed the U.K. economy grew 0.7% in the third quarter, in line with expectations, Reuters reported via Euronext. Sterling edged up to 83.57 pence per euro, near its strongest level since May 2025.

The Bank of England raised its benchmark rate last week for the first time in more than three years. Money markets assign roughly a 75% chance of another increase in December, according to Reuters. ING's U.K. economist James Smith said he expects another increase in February, Investing.com reported.

Commodity currencies weaken

The Australian dollar fell 0.45% to $0.6826, near a seven-month low, and the New Zealand dollar lost 0.15% to $0.5552, CNBC reported.

What comes next

New York Fed President John Williams was scheduled to speak on a panel later Thursday. "If Williams backs 50 basis points or the idea of 50 at least discussing it, then the market will have to continue to reprice that. And then you can see further dollar strength," Broux told CNBC. The U.S. producer price index for October is due Friday, Nov. 13, a release Pesole said could be "the catalyst for another USD leg higher."