US dollar nears 18-month high following Federal Reserve minutes

The US dollar has maintained strength, trading near an 18-month high as investors analyze Federal Reserve policy signals. The dollar index rose to approximately 102.13–102.25 following the release of minutes from the Federal Open Market Committee’s September meeting.

The minutes revealed that while policymakers unanimously voted to raise interest rates by a quarter percentage point, there were internal divisions regarding the rationale. Most participants viewed inflation as a significant upside risk, reinforcing a hawkish tone. Despite this, market expectations suggest a high probability that the Fed will hold rates steady at its upcoming late-October meeting.

Other market factors influencing the greenback include rising oil prices, which provided short-term support, and fluctuations in US Treasury yields. In currency markets, the euro and Japanese yen saw weakness against the dollar, while the dollar index recovered from previous slides.