Dollar index reaches an 18-month high after US inflation report

The US dollar index reached its highest level since April 2025 on October 14 before retreating from its intraday peak. The advance followed the release of September US inflation figures.

RBC reported that the index peaked at 102.945, up about 0.7%. It had last traded above that level on April 10, 2025. The euro fell as low as $1.1113 during trading, its weakest level since May 13, 2025.

Annual US inflation accelerated to 3.7% in September, exceeding analysts' forecast of 3.6%. Investors subsequently revised their expectations for a Federal Reserve interest-rate increase.

The dollar's advance moderated later in the US session. Reuters reported DXY at 102.53 late in the New York afternoon, still up 0.34% on the day.