The dollar climbed to the highest level in three months, propelled by a weakening yen and the Federal Reserve pulling back from additional interest-rate cuts this year.
The Bloomberg Dollar Spot Index rose as much as 0.6%, touching its highest level since Aug. 1, before paring some gains. After the Fed reduced rates by a quarter point as expected on Wednesday, Chair Jerome Powell warned that a cut in December is not a given, curtailing expectations for more cuts this year. The Bank of Japan followed by dampening rate-hike expectations on Thursday, pushing the yen down to an eight-month low.