Dollar Holds Near Two Week High as Yen Slips Past 160; G20 Finance Meeting Eyes Iran Sanctions Coordination

According to Reuters, in a report carried by Shafaq News early Monday, 9 Shahrivar 1405 (August 31, 2026), the US dollar index, which measures the currency against six major peers, held near a two week high at 99.6, after Federal Reserve Chair Kevin Warsh's hawkish remarks at the Jackson Hole symposium pushed traders to raise their bets on a September rate hike. Markets priced the probability of a September Fed rate hike at 57 percent, the report said, while the two year US Treasury yield rose to a more than one month high of 4.33 percent. At the same time, the Japanese yen slipped past the psychologically important 160 per dollar level, trading at 160.01, a threshold the report said has again put the risk of official intervention by Tokyo and Washington in the spotlight. US Treasury Secretary Scott Bessent said on Sunday that recent yen moves had been "pretty well contained."

Dollar demand was also supported by Brent crude's nearly 2 percent rise after the US strike on Iran's Larak Island on Sunday, the report said. Market attention is now turning to the G20 finance ministers and central bank governors meeting in the United States on Monday and Tuesday, 9 and 10 Shahrivar, where the report said observers will watch for signs of coordinated efforts to sever economic ties with Iran. Swings in the dollar index and US Treasury yields feed directly into global gold prices and, through them, into Iran's domestic coin and currency markets.