The DXY dollar index extended gains for a fourth consecutive session, trading above 101.8 and reaching its highest level since April 2025. The index rose 2% in September and began the fourth quarter on a firm footing as elevated inflationary pressures linked to the situation in the Middle East, resilient U.S. economic performance and comments from Federal Reserve officials supported expectations for additional tightening. Minneapolis Fed President Kashkari said price pressures remained elevated even after PCE inflation, the Fed’s preferred gauge, came in below expectations. Traders have fully priced in another 25-basis-point rate hike this year and nearly four additional hikes by the end of next year, although the probability of an October increase has fallen to about 37% from roughly 70% last week. The dollar was mostly higher against the yen, pound and euro.