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Dollar Hits Seven-Week High as Fed Officials Warn on Inflation

10/2/2026

The dollar index (DXY00) climbed to a seven-week high on Tuesday, finishing the session up 0.17%.

The currency found support following hawkish comments from Federal Reserve officials who warned that inflation pressures could remain elevated, suggesting a preference for additional monetary tightening.

Boston Fed President Susan Collins stated she sees an "increased likelihood" of scenarios where inflation remains "notably above 2%".

Richmond Fed President Tom Barkin added that it could take time for inflationary shocks to wane, noting a risk that elevated pressures could become entrenched.