Dollar Index Highest in 17 Months
2026-10-01 09:16
By
Joana Taborda
1 min. read
The dollar index extended gains for a fourth consecutive session, starting Q4 on a firm footing and trading above 101.8, its highest level since April 2025.
The index also extended its 2% advance in September, continuing to benefit from expectations of further Fed tightening amid elevated inflationary pressures stemming from the situation in the Middle East and resilient US economic performance.
Comments from several Fed officials also reinforced expectations for further rate hikes.
Minneapolis Fed President Kashkari said on Wednesday that price pressures remained elevated, even after PCE inflation, the Fed’s preferred inflation gauge, came in below expectations.
Traders have fully priced in another 25bps Fed rate hike this year and nearly four additional hikes by the end of next year.
However, the probability of a hike at the October meeting has fallen to around 37%, down from roughly 70% last week.
The greenback was mostly higher against the yen, the pound and the euro.