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U.S. Dollar Rises Ahead of Key Trade Talks and Fed Rate Decision

U.S. Dollar Rises Ahead of Key Trade Talks and Fed Rate Decision. Source: Photo by Pixabay

The U.S. dollar climbed to a two-week high against the yen on Monday, buoyed by optimism over global trade talks and anticipation of major central bank meetings. The greenback gained 0.15% to 153.07 yen, touching its strongest level since October 10, while the dollar index edged up 0.05% to 98.97.

The Australian dollar rose 0.2% to $0.6528, supported by progress in trade negotiations between the U.S. and China that lifted investor sentiment toward risk assets. Meanwhile, the euro held steady at $1.1622 but surged to a record 178.13 yen, as the Japanese currency weakened sharply. The Swiss franc also hit an all-time high of 192.25 yen. Sterling gained slightly, up 0.04% to $1.3314.

Market attention now turns to a busy week of diplomacy and monetary policy decisions. U.S. President Donald Trump is scheduled to meet Chinese President Xi Jinping on Thursday during the Asia-Pacific Economic Cooperation (APEC) summit in South Korea, where the two leaders are expected to finalize the framework of a trade deal. Ahead of that, Trump will visit Japan and meet Prime Minister Sanae Takaichi.

Investors are also watching the U.S. Federal Reserve’s policy meeting closely. The Fed is expected to cut its benchmark interest rate by 25 basis points to a range of 4%–4.25%, following weaker inflation data. Analysts suggest that while rate cuts are already priced in, markets will focus on Fed Chair Jerome Powell’s comments for signals about future monetary easing.

In Asia, the Bank of Japan is likely to keep its policy rate unchanged at 0.5%, although discussions on potential rate hikes could emerge as economic concerns ease.

Cryptocurrencies mirrored the upbeat sentiment—Bitcoin gained 1.6% to $115,157.36, while Ethereum rose 3.3% to $4,198.69, reflecting broader optimism across financial markets.

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