US Dollar Index pushes higher on the case for another Fed increase
The Dollar Index trades near 100.70, its highest level since late July. It has climbed through five straight sessions of falling Crude Oil, the opposite of how the war has moved it for most of this year. The Fed is the reason.
The US Dollar Index climbed to its highest level in more than two months, reaching 100.70, after the Federal Reserve raised interest rates on September 16 and indicated further hikes this year. The Dollar surged as cheaper crude oil prices reduced inflation, lessening the need for more Fed rate hikes. Iran reportedly reopened the Strait of Hormuz for ships, but the offer was not independently confirmed.
Crude oil prices fell, contributing to the Dollar's rise. Other factors, such as weaker yen and positive economic data, also influenced the Dollar Index. The Fed's projections suggest interest rates may stay high until after 2028, further supporting the Dollar's strength.
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