US Dollar Tests Yearly Highs as Traders Bet on December Rate Hike

Key Facts

The U.S. dollar is moving higher as traders bet the Federal Reserve will raise interest rates in December. FX Empire reported that the U.S. Dollar Index is testing its yearly highs as market participants focus on a hawkish outlook for monetary policy and continued tightening.

This upward momentum follows data released on November 12, 2026, showing that initial jobless claims reached 200,000, exceeding the forecast of 195,000. Additionally, existing home sales dropped by 5.5% month-over-month in October, while the 10-year Treasury yield settled above 5.09% on November 12, 2026.

Looking ahead, the Producer Price Index (PPI) for October is scheduled for release on November 13, 2026, with a forecasted monthly increase of 0.4%. Fed Governor Bowman is also expected to deliver a speech on the same day, which may provide further clarity on the central bank's policy direction.