The dollar had its best week in two years, while the yen recorded its largest weekly decline since 2009.

Golden Ten Data reported on October 5 that the institutional dollar spot index pumped 1.6% this week, the largest weekly increase since September 2022. The yen was the hardest hit, falling 4.4% against the dollar this week, its biggest weekly drop since 2009. “Signs that the labor market is more resilient than expected should help drop expectations of aggressive Fed rate cuts,” said Aroop Chatterjee, a strategist at Wells Fargo. “Over the past few months, the market has expected the Fed to cut interest rates much more than other central banks around the world.” Swap traders now expect the Fed to cut rates by about 50 more basis points this year, down from the more than 60 basis points expected on Thursday.