Dollar Slips as Fed Rate-Hike Bets Grow—But Asian Currencies Don't Follow Suit

The WSJ Dollar Index fell 0.10% to 96.50 on June 8, 2026, as markets priced in growing Fed rate-hike expectations. Counterintuitively, higher U.S. rates should strengthen the dollar by making dollar assets more attractive. Yet Asian currencies traded mixed—some rising, others falling—suggesting rate expectations alone aren't driving uniform moves. Local factors matter more than the headline dollar index suggests.