Geopolitical Tensions, Fed Rate-Rise Prospects Likely to Lift Dollar -- Market Talk

0900 GMT - The dollar could rise in coming months as geopolitical tensions continue and the Federal Reserve is expected to raise interest rates further, XS.com's Simon-Peter Massabni says in a note. "Geopolitical instability across the Middle East remains entrenched with zero prospect of a near-term return to diplomatic solutions," he says. Heightened Middle East escalation threats combined with persistent U.S. inflation risks and a remarkably resilient economy should force the Fed maintain a prolonged restrictive monetary policy stance, he says. The DXY dollar index rises 0.1% to 101.972 after hitting a two-week low of 101.576 Friday and an 18-month high of 102.945 on Wednesday. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

October 19, 2026 05:00 ET (09:00 GMT)