The US dollar rose to its highest level in 19 months against major currencies during Thursday’s trading session, supported by growing expectations of further interest rate increases in the United States amid persistent inflationary pressures.
Dollar Index Approaches 103.02 Points
The US Dollar Index, which measures the performance of the greenback against a basket of major currencies, gained 0.09% to reach 103.004 points, according to data recorded at 9:32 a.m. Cairo time (7:32 a.m. GMT).
Earlier in the session, the index touched 103.02 points, its highest level since April 2025.
Markets Price in Further Interest Rate Hikes
Traders increased their bets on higher US interest rates following the release of October inflation data, which came in above expectations, alongside a series of hawkish remarks from Federal Reserve officials.
Fed policymakers expressed concerns about persistent inflation, while leaving the door open to a possible 50-basis-point interest rate increase.
Several major brokerage firms, including Goldman Sachs, expect another rate hike early next year, in addition to an anticipated increase in December.
