Dollar Weakens, Yen Strengthens as Expectations for Fed Rate Hike FadeSingapore, 17 Aug 2026 (ONA) — The US dollar index fell today, while the yen gained momentum against the dollar, largely shrugging off weaker-than-expected Japanese GDP ‌data as traders reined in expectations the Federal Reserve could raise interest rates this year. The yen was 0.2% stronger against the ‌US dollar at 159.075 yen, on track for a second straight day of modest gains, after data on Monday showed Japanese GDP for the second quarter expanded at an annualized 1.1%. In the bond market, Japan’s 10-year government bond yield jumped to a three-decade high. The euro was up 0.1% at $1.1585, breaching a two-month high, while the British pound was 0.1% stronger at $1.3551, approaching its firmest levels since May. The Australian dollar was 0.3% higher at $0.7101, while its kiwi counterpart advanced 0.4% to $0.5911, both at their strongest levels since June. The ‌US dollar index, which measures ​the greenback’s strength against a basket of six currencies, was 0.1% lower, trading near its lowest levels of the month at 99.501. Against the Chinese yuan, the US dollar was flat at 6.7412 yuan in offshore trade ahead of activity data due for release later today. — Ends/AH