Dollar Climbs as Yen Stumbles Amid Fed and BOJ Meetings

The U.S. dollar strengthened at the end of a holiday week, buoyed by hawkish Federal Reserve signals. Meanwhile, the yen remained near a five-month low due to cautious Bank of Japan policies and potential government intervention. Dollar gains against major currencies highlight ongoing U.S. economic moves.

The U.S. dollar ended the week strong, driven by hawkish sentiment from the Federal Reserve. In contrast, the Japanese yen hovered near a five-month low as the Bank of Japan maintained cautious policies.

Traders anticipate prolonged high U.S. interest rates, which have raised Treasury yields and bolstered the dollar against major currencies. The dollar index saw a 2.2% increase this month, with year-to-date gains reaching 6.6%.

Japanese authorities have hinted at potential intervention due to yen volatility, as other major currencies like the euro and sterling also struggled against the dollar's rise.

(With inputs from agencies.)