The dollar in the world market rose to a maximum in a year and a half

The dollar exchange rate in the world market rose to a maximum since April 2025. The dollar index (DXY) on Thursday, October 14, increased by 0.7% and at its peak reached 102.945 points. The previous time above this value, the indicator rose on April 10, 2025.

In the international forex market, the dollar also strengthened against the euro by 0.8%. The last time the euro was cheaper than $1.1113 May 13, 2025

The dollar index (DXY) shows the ratio of the US dollar to a basket of six other major currencies – the euro, the yen, the pound sterling, the Canadian dollar, the Swedish krone and the Swiss franc.

The dollar is strengthening against the background of high inflation rates in the United States, which worsened investors' expectations about raising interest rates by the Federal Reserve System (USF), Bloomberg notes. Now the market puts two Fed rate hikes in prices until the end of January.

Inflation in the United States accelerated to 3.7% in September amid rising fuel prices, the U.S. Department of Labor said. At the same time, analysts expected 3.6%.

Against this background, financial markets increased the likelihood of raising the interest rate at the Fed meeting on October 27-28 to about 52% (from about 22% before the publication of the report on the consumer price index), writes Reuters with reference to the FedWatch tool.

Demand for the dollar as a safe-haven currency has increased due to rising oil prices caused by the conflict in the Middle East, as well as increased concerns about financial and political risks in France.

The conflict in the Middle East has also boosted bond yields around the world. Although the heads of the central banks of major countries are also preparing to raise the cost of borrowing to curb price growth, not all economies are able to withstand the same rate hikes as the United States in September.

The growing gap in interest rates has a positive effect on the dollar, so many Wall Street strategists are revising their forecasts for the US currency, concluded Bloomberg.

Earlier, the World Monetary Fund (IMF) called the growth of government bond yields the most serious risk to the global financial system. Investors fear that the combination of historically high debt loads and now higher refinancing costs will further strain government budgets.

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