Dollar index rises to 101.2 for fourth straight session

  • Dollar index extended gains for a fourth consecutive session on Thursday.
  • 101.2 was the dollar index’s Thursday level, near July highs.
  • Markets priced nearly a 64% chance of another October hike, while the yen hit three-week lows.

The dollar index extended its gains for a fourth consecutive session on Thursday, reaching 101.2 and remaining near July highs. The advance, its longest winning streak since May, has been supported by expectations of further Federal Reserve tightening. Oil prices also rose as tensions between the United States and Iran remained elevated, while talks on the sidelines of the United Nations General Assembly made little progress toward ending the conflict. Higher energy costs are likely to add pressure to inflation, especially after U.S. diesel prices reached a new record high. Markets are pricing in nearly a 64% chance of another 25-basis-point rate increase in October, while recent comments from several Federal Reserve officials have been viewed as hawkish. The dollar also strengthened against the Swiss franc after the Swiss National Bank kept interest rates unchanged at 0%, while the Japanese yen weakened to three-week lows.

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