Dollar Extends Rally Despite Lack of Rate Support; Yen Intervention Risk Looms

The US Dollar extended its rally for a sixth consecutive session, rising by more than 2% since the Federal Reserve delivered a hawkish hold on rates last week. The Dollar Index has not fallen since last Tuesday, despite the absence of further rate support.

Market participants are increasingly cautious about possible intervention by Japanese authorities to stem yen weakness. The sustained dollar strength has kept the yen under pressure, raising the risk of official action from Tokyo.