US Dollar Gains Against Pound and Yen Ahead of Fed Rate Decision

The US Dollar strengthened against the British Pound and Japanese Yen on Monday as investors positioned ahead of the Federal Reserve's interest rate announcement scheduled for Wednesday. According to FX Street, the British Pound tested five-week lows at 1.3464, slipping 0.23% amid rising US Treasury yields.

Supporting the Dollar's advance, the Dollar Index climbed 0.4% to near 99.50, while the benchmark 5% US Treasury yield helped boost demand for the greenback. The USD/JPY pair also rose, reflecting increased US Dollar demand ahead of the Fed decision, FX Street reported.

For Japanese markets, these moves highlight the sensitivity of the yen to US monetary policy expectations, which can impact export competitiveness and cross-border capital flows.