Dollar holds firm after Fed raises inflation alarm, yen slips past 160

The dollar hovered near its highest in ​more than two weeks on Thursday after some Federal Reserve policymakers turned hawkish, sending yields to a one-month top, ‌while the Japanese yen’s break above 160 sharpened focus on intervention risks. Fed Chair Jerome Powell closed out his eight years with rates on hold amid rising inflation concerns. The Fed’s 8–4 decision to leave the rate unchanged was its most divided since 1992, drawing three dissents from officials who no longer think the ​bank should communicate a bias towards easing. The hawkish shift sent yields sharply higher. The 2-year note yield , which typically moves ​in step with rate expectations, rose to 3.928%, while the 10-year climbed to 4.421% — both their highest ⁠levels since March 27.