Dollar set for biggest weekly gain in two months

By Chibuike Oguh and Javi West Larrañaga

NEW YORK/GDANSK, Nov 13 (Reuters) - The dollar was on track for its strongest weekly rise in two months on Friday, holding near a 19-month high as rising bets on a larger Federal Reserve rate hike lifted US Treasury yields, while the yen hovered around 160 per dollar and kept traders alert for possible intervention from Tokyo.

Hawkish comments from Federal Reserve officials and this week's stronger-than-expected US inflation data have left traders weighing the prospect of a larger-than-usual Fed rate hike next month.

Two-year Treasury yields have risen around 32 basis points so far this week to around 4.84%, on course for their biggest weekly jump since April 2025.

The euro was down 0.23% at $1.103, after hitting its lowest level against the dollar since April 2025. It was on course for its fourth straight week of losses.

The dollar was up 0.28% to 0.837 against the Swiss franc and was set to snap two straight weeks of losses. 

"The dollar is still firm and that's driven by a robust jobs report and an acceleration of the CPI," said Marc Chandler, chief market strategist at Bannockburn Global Forex. "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."

Traders are pricing in a roughly 92% chance of a 25-basis-point hike next month, the CME FedWatch tool showed. 

The dollar index, which measures the greenback against a basket of currencies, was up 0.1% at 103.34, clinging to its highest since April 2025 and on track for its biggest weekly gain since September. That would be its third straight week of gains.

YEN FOCUS          

The yen was steady at 159.84 per dollar, around its weakest since early September, fuelling concerns about possible intervention. The currency has weakened about 1% this week, on track for its biggest weekly loss since September. 

Japanese Finance Minister Satsuki Katayama said on Friday the government would respond appropriately to currency volatility.

The Australian dollar was down 0.46% at $0.678. The Aussie is the worst-performing G10 currency against the dollar so far this month. Australia is the only G10 country for which markets are pricing a rate cut next year. [AUD/] 

The New Zealand kiwi weakened 0.29% versus the greenback to $0.553 and was on course for its third straight week of losses.

In cryptocurrencies, bitcoin fell 4.73% to $68,126.21. Ethereum declined 5.02% to $1,914.61.

(Reporting by Chibuike Oguh in New York and Javi West Larrañaga in Gdansk. Editing by Susan Fenton)