The dollar paused its decline as traders wait for Federal Reserve signals, with the currency market still positioned long the dollar on expectations that the AI boom keeps the US economy strong and rates higher for longer. Sterling hit a one-month high of US$1.3409 and held at US$1.33955, supported by hotter-than-expected UK inflation. The Australian dollar hovered above US$0.7025 after RBA deputy governor Andrew Hauser said the inflation outlook was 'materially worse', partly due to high oil prices, while the kiwi reached a one-month high of US$0.5709 on rate-hike bets. The Bank of Canada is expected to hike next week, and the euro has held above US$1.12 after about a month of slide driven by French fiscal concerns, while the yen stayed around 158 per dollar. Markets expect the Fed to hold in October with its funds rate at 3.75–4% and then hike in December.
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Related tickers and likely impact
DXY
• NeutralRelevance: medium
| Market | Currencies |
|---|---|
| Close on 10/21/2026 | 101.70 |
| Change that session | 0.00% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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