The U.S. Dollar Index fell below 102 Tuesday ahead of a Federal Reserve meeting, following a September rate increase and elevated inflation readings.
FXStreet placed the ICE index near 101.80 in an article published at 12:09 a.m. ET (04:09 UTC). Intercontinental Exchange calculates the index from the dollar’s exchange rates against six currencies. The euro accounts for 57.6% of its weight, making the measure more sensitive to the euro than to any other currency in the basket.
The U.S. Bureau of Labor Statistics said its Consumer Price Index rose a seasonally adjusted 0.6% from August to September. The index was up an unadjusted 3.7% from a year earlier. A 9.1% rise in gasoline prices supplied more than half of the monthly consumer-price increase.
Producer prices also accelerated. September’s seasonally adjusted 1.3% rise in the Producer Price Index for final demand brought its unadjusted 12-month increase to 6.3%, the highest since Dec. 2022. Final-demand energy prices rose 10.8% during the month and accounted for more than 80% of the increase in final-demand goods prices, the bureau said.
The Federal Open Market Committee (FOMC) raised its target interest-rate range by 0.25 percentage point to 3.75% to 4% on Sept. 16. Minutes from that meeting showed most participants favored another increase by the end of 2026, while leaving later decisions dependent on fresh economic data. The minutes also identified low- and moderate-income households as bearing a disproportionate loss of purchasing power from higher energy costs.
Two U.S. releases due Tuesday are ADP’s weekly NER Pulse at 8:15 a.m. ET (12:15 UTC) and the Census Bureau’s September housing starts and building permits at 8:30 a.m. ET (12:30 UTC). The Fed’s next rate decision is scheduled for 2 p.m. ET (18:00 UTC) Oct. 28.
