DXY Hits 15-Month High

2026-10-14 12:42 By Agna Gabriel 1 min. read

The US dollar climbed as much as 0.7% to 102.88 on Wednesday, its highest level since April 2025 after fresh inflation figures strengthened expectations of further Fed tightening.

CPI increased 0.6% in September from the previous month, the fastest rise in five months, while annual inflation reached 3.7%, above market expectations of 3.6%.

Also, core CPI, rose 0.3% monthly and 2.6% annually, reinforcing concerns that elevated energy costs are keeping price pressures high.

Markets subsequently priced in roughly a 50% probability of another Fed rate hike later this month, from just 22.1% a day ago.

However, Fed Bowman said she saw no immediate need for another increase following last month’s hike, despite high inflation.

Adding further pressure, oil prices continued to rise as escalating hostilities between Saudi Arabia and Iran-backed Houthi rebels heightened concerns over further supply disruptions in the Middle East.



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DXY Hits 15-Month High
The US dollar climbed as much as 0.7% to 102.88 on Wednesday, its highest level since April 2025 after fresh inflation figures strengthened expectations of further Fed tightening. CPI increased 0.6% in September from the previous month, the fastest rise in five months, while annual inflation reached 3.7%, above market expectations of 3.6%. Also, core CPI, rose 0.3% monthly and 2.6% annually, reinforcing concerns that elevated energy costs are keeping price pressures high. Markets subsequently priced in roughly a 50% probability of another Fed rate hike later this month, from just 22.1% a day ago. However, Fed Bowman said she saw no immediate need for another increase following last month’s hike, despite high inflation. Adding further pressure, oil prices continued to rise as escalating hostilities between Saudi Arabia and Iran-backed Houthi rebels heightened concerns over further supply disruptions in the Middle East.
2026-10-14
Dollar Holds Decline Ahead of CPI Report
The dollar index hovered around 102.1 on Wednesday after retreating in the previous session, as investors cautiously awaited September’s consumer inflation data for clues on the Federal Reserve’s next interest rate decision. The greenback faced additional pressure after New York Fed President John Williams indicated that one more rate hike may be appropriate this year, while further tightening would likely be unnecessary in 2027. Meanwhile, Fed Governor Christopher Waller said inflation expectations remained “well anchored.” Further commentaries from Richmond Fed President Thomas Barkin and Fed Vice Chair for Supervision Michelle Bowman are expected later today. Markets are currently pricing in roughly a 77% probability that the Fed will leave rates unchanged this month, while assigning an 88% chance of a rate hike in December.
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Dollar Falls on Tuesday
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