Business · Markets · 2 hrs ago
Dollar holds near 18-month high as markets await US inflation data
The US dollar remained near its strongest level in a year and a half in early Asian trading on Monday.
Investors were cautious as conflict in the Middle East intensified, including attacks on Saudi Arabia and two tankers over the weekend.
Oil prices moved up and down, while Brent crude was down 1% at $103.55 a barrel in Asian trading.
Markets are also waiting for US consumer price figures due Wednesday, which could shape expectations for the Federal Reserve's interest-rate decisions.
The Fed raised rates last month for the first time since 2023, and traders now largely expect it to leave rates unchanged this month.
Higher borrowing costs and rising energy prices have added to worries about inflation and the global economy.
The inflation data is among the last major US economic releases before the Fed's late-October meeting.
The dollar was near an 18-month high in early Asian trading on Monday as investors watched the Middle East conflict and awaited US inflation data.
The dollar index was slightly lower at 102.14 but remained near the peak it reached last week.
The US consumer price index report is due Wednesday and could influence expectations for Federal Reserve interest-rate policy.
Oil prices swung after Houthi attacks on Saudi Arabia and attacks on two tankers over the weekend.
Trading was subdued, with Japanese markets closed for a holiday.
- Who
- The US dollar and currency markets. Investors were assessing geopolitical risks and upcoming US inflation data.
- What
- The dollar held near an 18-month high while trading in a narrow range.
- When
- Monday, October 12, 2026, in early Asian trading.
- Where
- Asian currency markets.
- Why
- Investors were wary amid an escalating Middle East conflict and ahead of US inflation data that could influence monetary policy.
Commonwealth Bank of Australia analysts
Barclays analysts
Dollar outlook
Commonwealth Bank of Australia analysts
They said continued Houthi attacks on Saudi energy assets could support oil prices and the US dollar.
Barclays analysts
They said the dollar’s rally might pause in the near term, with some pullback possible.
We expect the Houthis to continue their attacks on Saudi Arabian energy assets, supporting gains in the oil price and the USD
we do not expect a breakthrough this week.
The dollar index reached an 18-month peak.
Two tankers were attacked as Yemen’s Iran-backed Houthis stepped up strikes on Saudi Arabia.
The dollar held near its 18-month high in early Asian trading.
The US consumer price index report is due.
The Federal Reserve is due to meet on interest rates.
- Dollar index
- 102.14, slightly lower in early Asian trading
- Dollar peak
- 18-month high reached last week
- US CPI report
- Due Wednesday
- Fed rate expectations
- Traders priced an 81% chance of no change this month, compared with 51% a month earlier
- Brent crude
- Down 1% to $103.55 per barrel in Asian trading
Sources
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