US dollar fluctuates against euro and yen amid interest rate speculation

The US dollar experienced mixed performance against major currencies last week. While the dollar index fell by 0.5 percent to 99.16 points, the currency strengthened by 0.3 percent against the euro, bringing the euro's value down to 1.1615 USD.

In contrast, the dollar saw a sharp 2.4 percent decline against the Japanese yen, reaching 156.25 JPY. This drop follows warnings from Japanese authorities regarding potential market intervention and analyst expectations that the Bank of Japan may soon raise interest rates. There is also speculation that Japanese investors might shift capital from US bonds to Japanese assets as domestic yields rise.

Market volatility was further influenced by Federal Reserve Governor Christopher Waller’s comments regarding interest rate stability, as well as stronger-than-expected US employment data. In August, US employment grew by 162,000, significantly exceeding analyst projections and providing the Federal Reserve with more room to consider interest rate adjustments.