Dollar Hits 7-Week High; Euro Awaits ECB President's Remarks

Dollar Hits 7-Week High; Euro Awaits ECB President's Remarks

22.09.2026 New

In the U.S. currency market on the previous business day, the U.S. dollar held steady amid expectations of further interest rate hikes by the Federal Reserve. The Dollar Index remains in the low 100s, at its highest level in seven weeks.Although the yield on the 10-year U.S. Treasury note fell below 5% yesterday amid a decline in crude oil prices, the dollar remains supported by the Federal Reserve’s continued focus on curbing inflation.The USD/JPY pair is trading in the mid-157 yen range today, with yen selling continuing amid concerns over the U.S.-Japan interest rate differential even after the Bank of Japan’s rate hike. On the other hand, concerns about potential foreign exchange intervention by Japanese authorities tend to intensify around the 158 yen level.

Among European currencies, the euro is trading in the $1.14 range against the dollar. The ECB raised its policy rate this month, and future monetary policy—taking into account energy prices and inflation trends—will remain the focus.While the decline in crude oil prices is helping to ease inflationary pressures, volatility persists across the energy market as a whole, and attention is focused on the extent to which the ECB recognizes the need for further tightening. The pound also weakened against the dollar on the previous trading day, and across European currencies as a whole, the impact of differing monetary policy outlooks is becoming increasingly pronounced.

ECB President Lagarde is scheduled to speak today. Since this statement is not part of the regular press conference following a policy meeting, we will be watching to see if she makes any specific remarks regarding inflation or monetary policy.Additionally, the preliminary September consumer confidence index for the eurozone is expected to worsen to -16.0 from the previous reading of -15.5. Since the September Richmond Fed Manufacturing Index will also be released at the same time, the direction of the euro-dollar pair may become clearer based on these developments in both the U.S. and Europe.