USD/JPY Surges Near 2024 Highs as Dollar Extends Post-Fed Rally
The US dollar pushed broadly higher on June 18, with USD/JPY approaching multi-year highs as markets digested a hawkish Fed stance.
The US dollar extended its post-Fed rally on Wednesday, June 18, with the greenback advancing against a basket of major currencies after the Federal Reserve struck a more hawkish tone the previous session. The dollar's biggest gains came against the British pound (+0.68%), the Swiss franc (+0.56%), and the Japanese yen (+0.47%), as risk sentiment improved and equities surged, with the Russell 2000 climbing 2.12% and the Nasdaq rising 1.91%.
USD/JPY was the session's most closely watched pair, breaking above the 2026 high of 160.717 before pressing through the 161.00 level and peaking at 161.81 — just 11 to 12 pips short of the highest price dating back to 2024. The sharp ascent immediately triggered intervention anxiety among traders, sparking a swift pullback to a session low of 160.887. However, buyers reasserted control, and the pair was trading near 161.40 heading into the close, leaving the broader uptrend intact.
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Both the Bank of England and the Swiss National Bank held rates steady during their respective meetings, adding further context to the dollar's broad advance. The BOE signaled it remains on hold for the foreseeable future, as slower growth risks offset persistent inflation pressures. The SNB, meanwhile, explicitly left the door open to currency intervention to counter franc strength — a warning that added pressure to CHF crosses.
On the macro data front, the US June Philadelphia Fed Business Index came in at 10.3, marginally above the 10.0 consensus estimate, while initial jobless claims printed at 226K versus a 225K forecast. Continuing claims also came in slightly above expectations at 1.810 million. The readings were close enough to estimates to keep the dollar's Fed-driven momentum intact rather than spark any meaningful reassessment of the rate outlook.
Geopolitical headlines added texture to the session, with President Trump declaring Iran "not a threat" and the US listing a blockade of Hormuz Strait maritime traffic. Oil prices fell on the news, reinforcing the risk-on tone. Traders are expected to watch USD/JPY intervention risk closely as the pair tests levels not seen since 2024. Continue reading at Forexlive.
