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Dollar Climbs as Japan Considers Expansionary Fiscal Move
14 Nov, 2025
Summary
- Dollar index up 0.12% on yen weakness
- Japanese government may pursue more expansionary policy
- US government shutdown nearing resolution, impacting economic data
As of November 14th, 2025, the US dollar index (DXY00) has risen by 0.12%, with the dollar climbing against the Japanese yen. The yen fell to a 9.25-month low against the dollar today, driven by concerns that the Japanese government will pursue a more expansionary fiscal policy.
While the dollar is gaining strength, its advances are being constrained by the current stock market strength, which has reduced the demand for the dollar as a safe-haven currency. Additionally, the impending resolution of the US government shutdown is expected to allow the release of economic reports that may indicate a weakening US economy, prompting the Federal Reserve to continue cutting interest rates.
The euro is also facing some pressure against the stronger dollar, but losses in the euro are being contained due to hawkish comments from European Central Bank (ECB) Executive Board member Schnabel, who stated that interest rates are "absolutely" in a good place. The ECB is seen as largely finished with its rate-cut cycle, while the Fed is expected to cut rates several more times by the end of 2026.
