The US dollar extended its recent gains, with hawkish market bets on the Federal Reserve's policy path providing support, even as oil prices declined.
The Bloomberg Dollar Spot Index rose for a third consecutive session, gaining as much as 0.3% intraday as traders reinforced expectations for a Fed rate hike this year.
This occurred alongside a drop in oil prices and a 10-basis-point decline in the yield on the 10-year US Treasury note to 4.40%.
The USD/JPY pair advanced 0.1% to 161.77, nearing a recent high of 161.93.
Bank of Japan Governor Kazuo Ueda stated in a speech on Wednesday that the central bank sees risks of inflation exceeding its 2% target and indicated it would raise interest rates further at an appropriate time, reiterating recent messaging from policymakers.
GBP/USD fell 0.3% to 1.3162, its lowest level since November 2025.
USD/CAD rose to 1.4238, marking its tenth straight day of gains—the longest winning streak since 2017—and hitting its highest point since April 2025.
The AUD/USD pair declined 0.5% to 0.6885, falling for a seventh consecutive session to its lowest level since early April.
Australia's core inflation rate for May remained above the upper bound of the central bank's target range, strengthening market expectations that policymakers will maintain a hawkish stance.
EUR/USD dropped 0.2% to 1.1355.
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