Dollar Index Treads Water
The US dollar index was little changed around 102.1 on Friday but remained on track for a nearly 0.2% weekly gain, marking its fourth consecutive week of advances and pushing the greenback to its highest level since April 2025. Investors continued to assess developments in the Middle East and their implications for energy prices and inflation. Oil prices eased after US President Trump pledged to refrain from attacking Iran until after the midterm elections, helping to ease concerns over further energy supply disruptions. Nevertheless, markets continued to price in the prospect of the Federal Reserve keeping interest rates higher for longer to contain persistent inflationary pressures. The probability of the Fed holding rates steady this month stood at around 81%, while the odds of a 25bps rate hike in December were approximately 69%.
2% weekly gain, marking its fourth consecutive week of advances and pushing the greenback to its highest level since April 2025. Investors continued to assess developments in the Middle East and their implications for energy prices and inflation. Oil prices eased after US President Trump pledged to refrain from attacking Iran until after the midterm elections, helping to ease concerns over further energy supply disruptions. Nevertheless, markets continued to price in the prospect of the Federal Reserve keeping interest rates higher for longer to contain persistent inflationary pressures.
The probability of the Fed holding rates steady this month stood at around 81%, while the odds of a 25bps rate hike in December were approximately 69%.