Dollar Index Hits 4-week High

DXY increased to 102.55, the highest since October 2026. Over the past 4 weeks, Dollar Index lost 0.04%, and in the last 12 months, it increased 3.07%.

The dollar index extended its gains to 102.8 on Wednesday, following a 0.5% advance in the previous session, reaching its highest level since April 2025. The rally came as investors increasingly priced in a more aggressive pace of Fed rate hikes in the coming months, following hotter-than-expected inflation data and increasingly hawkish remarks from central bank officials. Adding to the hawkish tone, Fed Governor Christopher Waller warned that a 50bps rate hike in December could be warranted, while Dallas Fed President Lorie Logan backed at least two further 25bps increases. Markets currently assign an approximately 86% probability to a 25bps hike at the Fed’s December meeting, while investors are also beginning to factor in additional increases in January and potentially April. Meanwhile, oil prices recovered, trimming losses following a two-day decline. The greenback strengthened against all major currencies, posting its largest gains against the Canadian dollar and the Swiss franc.

The US dollar index traded around 102.2 on Wednesday, holding onto its sharp gains from the previous session as expectations of further Federal Reserve rate hikes strengthened following hawkish comments from policymakers and stronger-than-expected US inflation data. Consumer prices increased 0.4% in October, exceeding market forecasts of 0.3%, while core CPI rose 0.3% for the third consecutive month, also above expectations of 0.2%. Reinforcing the hawkish outlook, Fed Governor Waller expressed support for additional monetary tightening in December, stating that he would favor a half-percentage-point increase if inflation continues to accelerate. Dallas Fed President Logan similarly indicated that more aggressive rate hikes may be necessary to bring inflation under control. Consequently, markets are now pricing in a 91% probability of a December rate hike, up from 84% a day earlier. Investors are also beginning to factor in further rate increases in January and potentially April.