Dollar Hits 19-Month High as Analysts Expect More Gains
The DXY index reached its highest level since April 2025, and KBC Bank says the dollar's rise could continue as markets bet on a Federal Reserve rate hike.
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what happened
The DXY dollar index rose to 103.083, its highest level since April 2025. KBC Bank analysts, cited by Market Talk, say the recent rapid gains in the U.S. currency could have further to run. The euro fell below key support at $1.1111 and touched an 18-month low of $1.1065.
The main driver for the dollar is expectations of a December Federal Reserve rate increase. According to LSEG data, markets price an 88% chance of a 25 basis point hike and a 12% chance of a 50 basis point move. Higher-than-expected U.S. inflation data and remarks from Fed Governor Christopher Waller about tighter policy have also added support.
Sterling showed little reaction to U.K. GDP data, which showed monthly growth of 0.2% in September against the 0.1% contraction expected in a WSJ poll.
why it matters
The key event for markets is the Federal Reserve's next rate decision, scheduled for Dec. 9. A stronger dollar typically weighs on dollar-priced commodities and makes foreign assets more expensive for buyers using other currencies.
market impact
Dollar and euro: Fed rate-hike bets support USD and pressure EUR/USD
- DXY dollar index pressure up — expectations of a December Fed rate hike draw demand for the dollar
- EUR/USD pressure down — break below $1.1111 support and an 18-month low amid a firmer dollar
tags
instruments
on polymarket
sources
- Dollar's Strong Upward Momentum Could Continue — Market Talk, 12 November 2026 at 08:05 UTC
- Dollar's Strong Upward Momentum Could Continue — Market Talk, 12 November 2026 at 08:05 UTC
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