LONDON—The U.S. dollar rose for a second day on Tuesday, briefly touching a six-month peak against Japan’s yen, on expectations that U.S. interest rates will remain higher for longer, while ongoing debt ceiling negotiations kept investors on edge.
Among a slew of Federal Reserve heavyweights who spoke on Monday, some hinted that the central bank had further to go in tightening monetary policy.
Minneapolis Fed President Neel Kashkari said that U.S. rates may have to go “north of 6 percent” for inflation to return to the Fed’s 2 percent target, while St. Louis Fed President James Bullard said the central bank may still need to raise by another half-point this year….