Dollar Strengthens Further

2026-09-24 14:24 By Joana Taborda 1 min. read

The dollar index extended its gains for a fourth consecutive session, rising to 101.2 on Thursday, its longest winning streak since May and keeping it near July highs.

The dollar has been supported by expectations of further Fed tightening.

Oil prices also moved higher amid elevated tensions between the US and Iran, while talks on the sidelines of the UN General Assembly have made little progress toward ending the conflict.

Higher energy prices are likely to add further pressure on inflation, particularly as US diesel prices hit a new record high.

Against this backdrop, traders have increased their bets on further Fed tightening this year.

Markets are now pricing in nearly a 64% chance of another 25 bps rate hike in October.

Recent comments from several Fed officials have also been perceived as hawkish.

Meanwhile, the dollar strengthened against the Swiss franc after the Swiss National Bank left interest rates unchanged at 0%.

The Japanese yen also weakened to three-week lows.



News Stream
Dollar Strengthens Further
The dollar index extended its gains for a fourth consecutive session, rising to 101.2 on Thursday, its longest winning streak since May and keeping it near July highs. The dollar has been supported by expectations of further Fed tightening. Oil prices also moved higher amid elevated tensions between the US and Iran, while talks on the sidelines of the UN General Assembly have made little progress toward ending the conflict. Higher energy prices are likely to add further pressure on inflation, particularly as US diesel prices hit a new record high. Against this backdrop, traders have increased their bets on further Fed tightening this year. Markets are now pricing in nearly a 64% chance of another 25 bps rate hike in October. Recent comments from several Fed officials have also been perceived as hawkish. Meanwhile, the dollar strengthened against the Swiss franc after the Swiss National Bank left interest rates unchanged at 0%. The Japanese yen also weakened to three-week lows.
2026-09-24
Dollar Towers at Near 2-Month High
The dollar index held above 101 on Thursday, hovering at its highest level in almost two months as stronger-than-expected economic data heightened inflation concerns and reinforced expectations for further policy tightening. S&P Global data showed US private-sector activity expanded at its fastest pace in more than five years in September, with both the services and manufacturing sectors improving while facing stronger inflationary pressures. Several Federal Reserve officials have also reaffirmed support for last week’s rate increase while warning of persistent inflation risks. Markets are now pricing in around a 70% chance of a Fed rate hike in October, up from 55% a day earlier. Meanwhile, uncertainty surrounding US-Iran negotiations continued to keep oil prices elevated, adding further pressure to inflation expectations.
2026-09-24
DXY Rises to 8-Week High
The dollar index rose more than 0.4% to above 101 on Wednesday, reaching an eight-week high after data showed US business activity expanding at its fastest pace in more than five years, fueling expectations of further Fed rate hikes. The S&P Global flash US Composite PMI climbed to 58.4 in September, marking its strongest reading since July 2021 and indicating a sharp acceleration in economic activity. Meanwhile, Brent crude rose above $100 a barrel, ending a five-session losing streak. Traders are now pricing in a nearly 60% chance of another 25 bps rate hike next month, following last week’s increase, while the odds of another move in December stand at around 48%. Markets were also monitoring developments in efforts to end the war with Iran. Investors are watching for progress in US-Iran talks, which could improve risk sentiment.
2026-09-23