Fed's Daly and Collins back hikes as dollar ends best week since September

The dollar closed Friday with its biggest weekly gain since September, and late Fed comments gave the hike story fresh support. San Francisco Fed President Mary Daly and Boston Fed President Susan Collins both signalled that higher rates are likely, according to the investingLive Americas wrap.

That same wrap described hawkish Fed worries as easing after the October PPI print, which came in at 6.5% year on year against 6.6% expected. Even so, investingLive said the US dollar led the majors on the day and the Australian dollar lagged. Investing.com tied the weekly gain to "Fed hike certainty".

What the Fed said after PPI

investingLive reported three Fed voices late in the US session:

• Daly: "In all likelihood, we need to raise rates."
• Collins: "I would think some additional policy tightening is warranted soon."
• Goolsbee: "We're not on the way to 2% inflation and we have to deal with that."

Daly also added a note of caution on growth. In a separate investingLive piece, she was quoted as "just starting to hear the consumer may be running out of gas." investingLive also cited Goldman Sachs as saying almost the entire US inflation overshoot can be explained by tariffs and the war in Iran.

For background on the producer price data, our sister site has a guide on what PPI means for Fed hike bets and the dollar.

The week in ECB fixings

No new fixing was published after Friday. The table uses the ECB reference rates of 13 November, with the daily change against 12 November and the weekly change against the 6 November fixing.

The Swiss franc was the weakest major against the dollar on the week by this measure. USD/CHF fixed higher on every day of the week. The Mexican peso was an exception, firming against the dollar in the fixings. The dollar index chart gives the broader picture.

Bonds, yen and commodity currencies

• Yields: Treasury yields logged their steepest weekly spikes since April 2025 on hawkish Fed signals, Investing.com reports.
• Yen: Japan's Prime Minister Takaichi issued another verbal warning as USD/JPY flirted with 160, according to the investingLive European wrap. The same wrap said higher real yields and a stronger dollar weighed on gold as Trump put an Iran deal in jeopardy.
• Loonie: The Canadian dollar held near a one-month low as US producer inflation kept Fed bets in place, per Investing.com.
• Chilean peso: It hit a 19-month low as copper dropped and the US rate outlook weighed, Investing.com reports.

Europe: data confirms sticky inflation

Eurozone Q3 GDP was confirmed at 0.4% quarter on quarter in the second estimate, investingLive reports. French final HICP came in at 3.7% against a 3.8% preliminary reading, while Spain's final CPI held at 4.9%. investingLive said both reports keep ECB rate hike bets alive. EUR/USD still fixed lower for a third straight day.

What to watch next

1. Fed pricing. investingLive's week-ahead preview says a December hike is fully priced, with a 12% chance of 50 bp.
2. US retailers. The same preview says every major US retailer reports next week, a test of Daly's warning on the consumer.
3. Nvidia and Anthropic. investingLive flags Nvidia earnings and the pricing of Anthropic's IPO as key risk events.
4. Yen at 160. Further official warnings from Tokyo remain in focus after this week's repeated comments.