Yen nears 160 on hawkish Fed bets as UK GDP beat fails to lift pound

The yen moved closer to 160 per dollar as hawkish Federal Reserve bets kept the US currency at its strongest in more than 19 months. Investing.com ran the move under the headline "Dollar scales 2025 peak on hawkish Fed bets; yen nears 160-level", and a solid UK growth report did little to shield sterling.

What moved and why

The ECB reference rates for 12 November show the dollar firmer against every major tracked since the 11 November fixing. USD/JPY fixed at 159.70, up 0.30% from 159.23. EUR/USD fixed at 1.1081, down 0.41%, and GBP/USD at 1.3256, down 0.39%. The commodity currencies lost the most: AUD/USD fixed at 0.6821, down 0.56%, and NZD/USD at 0.5556, down 0.48%. USD/CHF rose 0.39% to 0.8331. These are official ECB fixings, one per business day, not live quotes.

Over five fixings the trend is clearer. AUD/USD is down 2.56% since 5 November, USD/CAD is up 2.03% and USD/CHF is up 1.86%. For a chart view, see USD/JPY on TradingView. Our sister site explains what the 159 area means as support and resistance on USD/JPY.

Rates kept the dollar supported. Investing.com reports that Treasury yields held near two-week highs as traders waited for the next signal.

Sterling: strong data, weaker pound

UK figures beat forecasts. According to investingLive, September GDP rose 0.2% month on month against 0.0% expected. Industrial output rose 0.3% against a forecast fall of 0.3%, and manufacturing rose 0.7% against a forecast fall of 0.5%. investingLive said the data keeps a Bank of England rate hike in December on track. Third-quarter GDP grew 0.7% on the quarter and 1.9% on the year, both in line with estimates.

The pound still slipped. Investing.com reports that sterling dipped on the hawkish Fed despite 0.7% GDP growth.

US data and politics

US releases were softer. investingLive reports that initial jobless claims rose to 200K against 195K expected, up from 189K. Existing home sales fell 5.5% to 3.75 million in October, below the 3.85 million forecast. Inventory stood at 5.1 months and the median price was $416,700, up 0.4% on the year. investingLive described the housing market as "in a deep slump" with "no help coming from the Fed".

Risk appetite weakened. investingLive reports that S&P 500 futures hit a session low, down 0.75%, after President Trump wrote that the US does not need a deal with Iran. That cut across reports of possible direct talks between Iran and Vice President JD Vance.

Gold, tech and emerging markets

The investingLive European session wrap said gold broke $4,000 and erased its post-midterms gains as higher real yields and the dollar weighed. The same wrap said Nvidia stock plunged 8.6% and dragged US futures. Gold is on TradingView here.

In Asia, Investing.com reports the Indonesian rupiah hit a record low on MSCI downgrade concerns. investingLive reports India's October CPI rose to 6.09% against 5.93% expected, with food inflation at 8.94%. USD/CNY was steady, fixing at 6.668.

What to watch next

• Fed December decision: hawkish Fed bets remain the main driver of the dollar, according to Investing.com.
• USD/JPY and 160: Investing.com flagged the yen nearing the 160 level.
• Bank of England in December: investingLive says the GDP data keeps a December hike on the table.
• Iran headlines: Trump's comments put any talks with Iran in doubt, per investingLive.

FXcash Markets Desk