{
  "id": 12830744,
  "title": "US Dollar: Fed cautious on further hikes – MUFG",
  "url": "https://urgent.news/2026/10/08/us-dollar-fed-cautious-on-further-hikes-mufg",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-08T08:50:57.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/us-dollar-fed-cautious-on-further-hikes-mufg-202610080850"
  },
  "original_language": "en",
  "account": "MUFG's Lee Hardman observes that the US Dollar index maintains year-to-date highs despite the Federal Reserve scaling back expectations for further rate hikes. Softer US data and Federal Open Market Committee minutes indicate no urgency to increase interest rates again this month. However, fiscal and political risks in the Euro area continue to bolster the US Dollar against major currencies. Overnight, the major foreign exchange rates have remained relatively stable, with the dollar index trading close to its year-to-date highs. The US dollar has traded at stronger levels as the US rate market has reduced expectations for Fed rate hikes, suggesting that recent gains are driven more by negative overseas developments. The release of the September FOMC meeting minutes, where the Fed increased rates for the first time to combat the energy price shock, provided no indication that another hike would be imminent in the near future. Participants stated they would consider each meeting \"with an open mind, and decisions at future meetings would depend on incoming information and its implications for the outlook and balance of risks.\" In summary, the minutes indicated a more aligned Fed plan for one or two more rate hikes rather than the market's current prediction of three to four hikes. (This article was generated with the assistance of an Artificial Intelligence tool and edited by an editor. More information available.) The FXStreet Insights Team is a team of journalists who carefully select market insights from respected experts. The content includes observations from commercial sources and additional insights from both internal and external analysts. AUD/USD holds steady in the Asian session on Thursday, trading slightly above 0.6950 as traders evaluate developments in the Middle East crisis. The Pentagon reportedly prepared for possible strikes against Iran, keeping geopolitical risk premiums active. This, combined with hawkish FOMC minutes and elevated US bond yields, is likely to maintain the US Dollar's strength against the Japanese Yen. USD/JPY slipped below 158.00 in the Asian session on Thursday due to speculation that authorities may intervene to support the Yen. Despite trading near an 18-month high on profit-taking Wednesday, the US Dollar slipped on Thursday, despite Wednesday's hawkish FOMC minutes and the potential for further Middle East tensions, adding to the pair's decline. Gold experiences a slight pullback, trading near $4,125 during the early European session on Thursday, up approximately 0.35% for the day. Various factors contribute to the US Dollar's bullish outlook, helping to cap the precious metal's bounce from a two-month low, reached the previous day.",
  "summary": "MUFG’s Lee Hardman notes the Dollar index is holding near year-to-date highs even as US rate markets pare back expectations for further Federal Reserve tightening.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}