The US dollar index was little changed around 102.1 on Friday but was still on track for a weekly gain of almost 0.2%, its fourth consecutive weekly advance, lifting the greenback to its strongest level since April 2025.
Investors remained focused on developments in the Middle East and their potential impact on energy prices and inflation. Oil prices eased after US President Trump pledged not to launch an attack on Iran before the midterm elections, helping to alleviate concerns about further disruptions to energy supplies.
Even so, markets continued to factor in the likelihood that the Federal Reserve will keep interest rates elevated for an extended period to counter persistent inflationary pressures. Fed funds futures implied an approximately 81% probability that the central bank will leave rates unchanged this month, while the odds of a 25-basis-point increase in December were around 69%.
