Persistent inflation and a hawkish Fed could support the greenback in the near term, with the PCE price index up 3.6% year over year in September from 3.4% in August, and elevated oil prices adding to pressure. The U.S. Dollar Index (DXY) is up 3.53% year to date despite a 0.14% decline in the latest session, and the CME FedWatch probability of a December rate hike has climbed to 74.4% from 58.2% a month earlier. The longer-term outlook, however, depends on how inflation and Fed policy evolve, and an unwinding of the AI trade could lead foreign investors to pull money out of U.S. securities and weigh on the dollar. Over the past month, the Nasdaq Composite fell about 2.7% while the S&P 500 gained just 0.27%.
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Related tickers and likely impact
DXY
• NeutralRelevance: medium
| Market | Currencies |
|---|---|
| Close on 10/29/2026 | 101.88 |
| Change that session | -0.26% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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