Overview

The Reuters article published on 12‑Nov‑2026 and updated on 13‑Nov‑2026 reports a sharp strengthening of the U.S. dollar and a historic weakening of the Japanese yen, while also noting movements in the euro, sterling and the United Kingdom’s third‑quarter GDP.

U.S. Dollar Strength

At 15:50 ET (20:50 GMT) the U.S. dollar index rose 0.3 percent to 103.17, marking its highest reading since 7 April 2025. Over the preceding five trading sessions the dollar advanced 1.6 percent, a rally that began after the release of the U.S. jobs report on the prior Friday.

Labor Market and Inflation Data

The October non‑farm payroll figure increased by 165 000, well above the consensus estimate of 65 000, while revisions added a further 84 000 jobs for August and September combined. Consumer price data showed headline CPI up 0.4 percent month‑on‑month in October, a slowdown from the 0.6 percent rise in September but still above the 0.3 percent consensus. Core CPI, which excludes food and energy, held steady at 0.3 percent month‑on‑month, marginally higher than the 0.2 percent forecast.

Federal Reserve Rate Expectations

Fed Governor Christopher Waller indicated he would support a rate hike even if inflation cooled, suggesting a possible 50‑basis‑point increase if data remained strong. The CME FedWatch tool placed the probability of a 25‑basis‑point hike in December at nearly 85 percent, with a 50‑basis‑point hike priced at about 15 percent.

Euro and Sterling Movements

The euro weakened 0.3 percent to $1.1055, and the British pound fell 0.3 percent to $1.3236. The pound’s decline occurred despite the United Kingdom reporting real GDP growth of 0.7 percent in Q3 2026, matching consensus and exceeding the 0.5 percent growth recorded in Q2. Real GDP in September rose 0.2 percent after a flat month in August.

UK Economic Commentary

Sanjay Raja, chief UK economist at Deutsche Bank, noted that the 0.7 percent quarterly growth placed the UK’s annualized pace just above 2.5 percent, the strongest first three quarters since the pandemic rebound, and that the economy had outperformed most G7 peers.

Japanese Yen Weakness and Intervention

The yen briefly breached the 160‑per‑dollar threshold for the first time since 2 September, later trading at 159.87 per dollar. Japan’s Ministry of Finance disclosed that it spent a total of 15.4 trillion yen (approximately $96.33 billion) on foreign‑exchange interventions from July through September. This total includes a single‑day record purchase of 7.98 trillion yen on 30 July and a joint intervention with the United States amounting to 5.55 trillion yen on 31 July—the first coordinated yen‑buying operation with Washington since 1998. The coordinated action temporarily pushed the yen from near 164 toward 155, but subsequent U.S. monetary tightening eroded most of those gains.

Contributors

The article was contributed by Ayushman Ojha and Pranav Kashyap.