Dollar gains on rate hopes; yen drops below 160

The US dollar rose against a basket of currencies, supported by expectations of a rate hike by the Federal Reserve amid concerns over inflation and a decline in global Treasury bonds. Meanwhile, the Japanese yen fell below 160 yen against the dollar, as markets await potential moves by the Bank of Japan to raise interest rates. Authorities emphasized the importance of currency stability, amid growing expectations of a Federal Reserve rate increase at its upcoming meeting based on recent economic data.