The dollar index climbed to 101.3 on Wednesday, revisiting levels last seen in April 2025, as oil prices resumed their ascent and worries over inflation and tighter monetary policy resurfaced. Investors are also awaiting the release of the FOMC minutes later in the day for further clarity on the Fed’s policy outlook following last month’s 25 bps increase in the federal funds rate, the first rate hike since 2023.
Futures markets currently imply nearly a 78% probability that the central bank will keep rates unchanged this month, while the odds of a 25 bps hike in December are around 69%. The greenback advanced broadly, with its largest gains against the euro, as political and fiscal uncertainties in Spain and France pressured the common currency.
