Dollar Index at March 2025-Highs
The dollar index traded around 102.3 on Wednesday, its highest level since March 2025, as volatility in oil markets continued to fuel inflation concerns, reinforcing expectations that the Fed may need to keep monetary policy tighter for longer. Meanwhile, minutes from the September FOMC meeting showed that most Fed officials supported another rate hike this year, although they signalled no urgency to act. The odds of a rate hike in October fell to 17%, from around 70% in the days following the September decision, while the probability of a 25bps hike in December edged up to around 70%. The greenback strengthened broadly, gaining the most against the euro, as political and fiscal concerns in Spain and France weighed on the common currency.
3 on Wednesday, its highest level since March 2025, as volatility in oil markets continued to fuel inflation concerns, reinforcing expectations that the Fed may need to keep monetary policy tighter for longer. Meanwhile, minutes from the September FOMC meeting showed that most Fed officials supported another rate hike this year, although they signalled no urgency to act. The odds of a rate hike in October fell to 17%, from around 70% in the days following the September decision, while the probability of a 25bps hike in December edged up to around 70%.
The greenback strengthened broadly, gaining the most against the euro, as political and fiscal concerns in Spain and France weighed on the common currency.