The DXY dollar index extended gains for a fourth consecutive session, trading above 101.8 and reaching its highest level since April 2025, as investors assessed persistent inflation risks and the prospect of further Federal Reserve tightening. Minneapolis Federal Reserve President Neel Kashkari said annual personal consumption expenditures inflation of 3.4% and core PCE inflation of 3% in August remained too high and did not materially change his policy assessment. He said the economy had remained resilient despite tariffs, trade conflict and geopolitical tensions in the Middle East, after second-quarter gross domestic product growth was revised to a 2.2% annual rate from 1.5%. Kashkari joined the other Federal Open Market Committee members in approving a quarter-point rate increase last month, lifting the target range to 3.75% to 4%, while Fed Governor Michael Barr and Anna Paulson, the president of the Federal Reserve Bank of Philadelphia, also indicated that further tightening may be needed. Traders have fully priced another 25-basis-point increase this year and nearly four additional hikes by the end of next year, though the implied probability of an October move declined to about 37% from roughly 70% a week earlier.