FX.co ★ DXY Rises Toward 4-Week High

The dollar index climbed toward 98 on Thursday, approaching a four‑week high, as solid US economic data and a hawkish Federal Reserve tone dampened expectations for multiple rate cuts this year. Rising geopolitical tensions between the United States and Iran also drove oil prices higher, heightening inflation concerns and lending additional support to the greenback.

Minutes from the latest Federal Open Market Committee meeting revealed a divided policy outlook, with some officials indicating that further rate hikes remain possible if inflation stays elevated. Initial jobless claims fell more than expected to 206,000 last week, underscoring the labour market’s resilience, while the 2025 trade deficit remained among the largest on record.

In response, traders have scaled back expectations for aggressive monetary easing, though markets still price in two 25‑basis‑point rate cuts before the end of the year.