FX.co ★ Dollar Holds Firm on Hawkish FOMC Minutes

The dollar index remained above 102 on Thursday, hovering near its strongest level since April 2025, after the latest FOMC minutes reinforced a hawkish stance among policymakers in the face of persistent inflation risks. Records from the Federal Reserve’s September meeting showed unanimous support among all 19 policymakers for the September rate hike, and indicated that most still see another increase as appropriate by year-end. While markets broadly expect the Fed to leave rates unchanged this month, the probability of a December hike is currently estimated at around 78%. Investors are now awaiting the latest weekly US jobless claims for additional clues about the strength of the labor market. The greenback also continued to draw support from safe-haven demand, as concerns about a potential escalation between the US and Iran, together with ongoing threats to Middle East oil supplies, kept crude prices elevated and inflationary pressures firm.