Archive · 24 Jul 2026
Dollar Hits 40-Year High Against Yen
The dollar has reached a 40-year high against the yen and has also strengthened against the euro.
This is because oil prices have been going up due to conflicts in the Middle East, and the European Central Bank decided to keep interest rates the same.
The U.S. economy is seen as more protected from these oil price changes compared to Europe and Japan, which has helped the dollar.
The ECB is considering a rate hike in September, but there are concerns about both a weakened economy and higher inflation.
Meanwhile, the U.S. job market is stable, and there are expectations of a rate hike by the Federal Reserve.
The Japanese yen has weakened, and there are expectations of a more gradual approach to rate hikes by the Bank of Japan.
The dollar strengthened to a 40-year high against the yen and climbed against the euro.
Oil prices rose for a fifth straight day due to Middle East conflict, with Brent crude touching $100 a barrel.
The ECB kept interest rates unchanged but hinted at a possible hike in September.
U.S. initial jobless claims dropped to 187,000, indicating a stable labor market.
Markets are pricing in a 35.8% chance of a Fed rate hike at the next meeting and 81.4% for September.
- Who
- European Central Bank, Federal Reserve, Bank of Japan, U.S. President Donald Trump, Houthi allies
- What
- Dollar strengthens to a 40-year high against the yen, ECB holds rates steady, oil prices rise due to Middle East conflict
- When
- July 23
- Where
- Global financial markets, Middle East
- Why
- Rising oil prices due to Middle East conflict, ECB's decision to hold rates steady, expectations of Fed rate hikes
ECB Rate Hike Supporters
ECB Rate Hike Skeptics
ECB's September Rate Hike
ECB Rate Hike Supporters
A rate hike would be positive for the euro as markets are not pricing in a deep enough restriction to hurt the currency.
ECB Rate Hike Skeptics
The risks of a weakened economy are high, and the risks of higher inflation are high, so raising rates now could be detrimental.
- Dollar Index
- 101.47
- Euro to Dollar
- 1.1372
- US Crude Price
- $92.75 per barrel
- Brent Crude Price
- $101.21 per barrel
- Initial Jobless Claims
- 187,000
- ECB Rate Hike Probability (September)
- 71%
- Fed Rate Hike Probability (Next Meeting)
- 35.8%
- Fed Rate Hike Probability (September)
- 81.4%