Dollar Hits 2-Month High on U.S. Rate-Rise Bets -- Market Talk

1023 GMT - The dollar rises to a two-month high against a basket of currencies, extending recent gains on expectations for further U.S. interest-rate increases as soon as next month. The market currently prices a 73% chance that the Federal Reserve will raise rates by another 25 basis points in October, according to LSEG. The Fed raised rates by 25bps earlier this month and signalled further tightening. Since the decision, several Fed policymakers have pointed to the prospect of further rate rises to stem inflation as energy prices stay elevated amid the ongoing Middle East conflict. The DXY dollar index rises to as high as 101.487. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

September 29, 2026 06:23 ET (10:23 GMT)