Dollar Heads for Biggest Weekly Gain in Two Months; Euro Hits Lowest Since April 2025 as Yen Hovers at 160

The U.S. dollar was on track for its biggest weekly gain in two months on Friday, Nov. 13, 2026, holding near a 19-month high as traders priced in further Federal Reserve rate increases. The euro touched its weakest level since April 2025, and the yen hovered around 160 per dollar as Japanese officials repeated warnings about currency moves.

Dollar index near 19-month high

The dollar index, which measures the greenback against six major currencies, was up 0.1% at 103.34 late Friday morning in New York, its highest since April 2025, Reuters reported. The index was headed for its biggest weekly rise since September and a third straight weekly gain.

The index had traded near 103.19 earlier in the session, just below a 19-month high of 103.30, FXStreet reported. As of early Friday, the dollar had gained 0.66% against the euro, 0.84% against sterling, 0.91% against the yen and 1.94% against the Swiss franc this week, according to FXStreet data.

Rate expectations drive the move

Two-year Treasury yields had risen about 32 basis points this week to around 4.84%, on course for their biggest weekly jump since April 2025, Reuters said. Traders priced a roughly 92% chance of a quarter-point Fed increase next month, according to the CME FedWatch tool.

"We've had a series of hawkish comments from Fed officials this week including from (New York Fed President John) Williams and (Fed Governor Christopher) Waller," Marc Chandler, chief market strategist at Bannockburn Global Forex, told Reuters.

Analysts at ING described "a powerful, macro-driven rally in the dollar," noting that short-dated U.S. yields were close to 40 basis points higher since Tuesday morning, when Waller discussed the possibility of a half-point December increase, FXStreet reported.

October producer prices, released Friday, rose 0.3%, below the 0.4% forecast, while the annual rate rose to 6.5%, the Bureau of Labor Statistics said. On Friday, Chicago Fed President Austan Goolsbee said the Fed still "has work to do" on inflation.

Euro on course for fourth weekly loss

The euro was down 0.23% at $1.103 after hitting its lowest level against the dollar since April 2025, Reuters said, and was on course for a fourth straight weekly decline. Sucden Financial said the pair fell to a low near 1.1046 and was down about 1.6% over the past month and 4.6% over 12 months.

Sucden attributed the decline to widening short-term rate differentials. It noted that the European Central Bank is leaning toward a quarter-point increase in December with euro zone inflation at 4%, but that most economists see that as the end of the cycle. Euro zone third-quarter growth was confirmed at 0.4%.

Yen near 160 as Tokyo watches

The yen was steady at 159.84 per dollar, around its weakest since early September, and had weakened about 1% this week, on track for its biggest weekly loss since September, Reuters said. The pair rose above 160 during Asian trading before pulling back, FXStreet reported.

Bank of Japan data showed the dollar traded in a range of 159.66 to 160.19 yen in Tokyo, with a central rate of 159.86. At 5 p.m. Tokyo time, the dollar was at 159.84-86 yen and the euro at $1.1058-59.

Finance Minister Satsuki Katayama said the government would respond appropriately to currency volatility, Reuters reported. Prime Minister Sanae Takaichi said the government was in close contact with U.S. financial authorities and would strive to preserve an orderly foreign exchange market, according to FXStreet.

Sucden noted that October wholesale inflation of 7.1% in Japan and a nearly 25% jump in yen-based import prices support expectations for a Bank of Japan increase to 1.5% at its Dec. 17-18 meeting. Sucden also cited Japan's record intervention of roughly $170 billion earlier this year.

Other currencies

The dollar rose 0.28% to 0.837 Swiss franc and was set to end two straight weeks of losses. The Australian dollar fell 0.46% to $0.678 and was the worst-performing G10 currency against the dollar this month, Reuters said. Australia is the only G10 country for which markets are pricing a rate cut next year. The New Zealand dollar fell 0.29% to $0.553.

Sterling traded in a tight range below $1.3250 after three consecutive daily losses and was down more than 0.8% for the week, FXStreet said.