Dollar near one-month high as yen edges toward 160

The US dollar reached a one-month high against major currencies on Thursday, driven by expectations of further Federal Reserve rate hikes, while the Japanese yen edged closer to the psychologically significant level of 160 against the greenback. The dollar index climbed 0.63% to 102.85, its highest since October 14, as traders grew confident in additional Fed tightening following robust October inflation data and hawkish statements from US central bank officials.

Goldman Sachs and other major brokerages now anticipate a potential rate hike early next year, in addition to the one scheduled for December. New York Federal Reserve President John Williams is scheduled to speak on a panel later Thursday, and his remarks, particularly those preceding the October Federal Open Market Committee meeting, suggest the Fed had time to consider additional hikes, according to Gavin Friend, senior markets strategist at National Australia Bank.

Market sentiment has shifted rapidly since a stronger-than-expected October Consumer Price Index report, prompting Fed officials to emphasize the likelihood of further rate increases. The euro gained 0.09% against the dollar at $1.1099, while the British pound stood at $1.328. The Australian dollar slipped 0.03% to $0.6845, and New Zealand's kiwi rose 0.04% to $0.5564.

Against the yen, the dollar slipped 0.12% to 159.58, though it remained buoyed by the substantial interest-rate differentials between the US and Japan. Bank of Japan board member Toichiro Asada, a dissenting voice from September's decision to raise interest rates to 1.25%, is set to address the public later in the day. Should Asada portray a cautious outlook on further rate hikes, the disparity in monetary policy between Japan and the US may become more pronounced, potentially leading to increased demand for the dollar as investors sell the yen, according to an analyst at MUFG Bank.

Notably, several analysts in a Reuters poll expect the next Bank of Japan rate hike as early as next month. Meanwhile, global cryptocurrency prices dropped, with Bitcoin falling 0.59% to $73,876.57, and Ether declining 0.78% to $2,052.27.