The US Dollar Index rose to 102.85, the highest level since April 2025.

Driven by US October inflation running above expectations for the third consecutive month and hawkish statements from Federal Reserve officials, the US dollar strengthened broadly against major currencies on Wednesday. The US Dollar Index rose 0.63% to 102.85, marking its highest level since April 2025; USD/JPY climbed 0.69% to 159.83, reaching a more than two-month high and approaching the 160 threshold; EUR/USD fell 0.61% to $1.11, its lowest since May 2025. USD/CHF rose 0.86%, hitting its highest since mid-October. Goldman Sachs has revised its forecast to project that the Federal Reserve will raise interest rates in December and March next year, while Deutsche Bank expects consecutive hikes in December, January, and March. Analysts pointed out that rising interest rate expectations have widened the dollar’s interest rate differential advantage, and coupled with safe-haven demand from the US and Israel wars with Iran, continue to provide support for the dollar.