The U.S. dollar strengthened further on September 16, 2026, as the Federal Open Market Committee (FOMC) raised the federal funds rate to a 3.75%-4.00% range—a first tightening since July 2023. The move followed a 3.7% year-over-year increase in the U.S. Personal Consumption Expenditures (PCE) price index, which has remained above the Federal Reserve’s 2% target for 65 consecutive months. Treasury yields surged, with the 10-year benchmark hitting its highest level since April 2007 and the 30-year yield reaching a fresh 24-year peak, reflecting market expectations of sustained monetary restraint. The dollar index (DXY) climbed 0.4% to 99.89 by 14:25 ET, while sterling (GBP/USD) weakened by 0.2% to $1.3447, though some reports placed it at 1.3394. Meanwhile, the Japanese yen slipped to a one-week low, underscoring the dollar’s resilience amid global risk appetite and tighter liquidity conditions.
Dollar strength, Fed hike push yen to one-week low
As the U.S. dollar index rose 0.4% to 99.89, Asian currencies showed mixed performance amid a hawkish Federal Reserve stance and elevated Treasury yields.
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Sophie Laurent · FX & Rates Desk · 20 Sept 2026 · 07:19 · 1 min de lectura
Este artículo fue producido con asistencia de IA y editado por un periodista de Finance Review Daily.
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Escrito por
Sophie Laurent
FX & Rates Desk
Sophie covers currency markets and central bank policy across Europe, with a focus on how rate decisions ripple through FX pairs. She has been tracking the ECB's policy path since the start of the current easing cycle.
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