US Dollar Hits 18-Month High on Rate Hike Expectations

The US dollar climbed to an 18-month high on Wednesday, October 15, 2026, as investors reacted to renewed expectations that the Federal Reserve System will raise interest rates later this month. The dollar index rose 0.68% to 102.86, marking the currency's strongest position since April 2025.

This surge triggered declines across several major global currencies. The euro fell 0.69% to $1.1121, hitting a 17-month low against the dollar and a 16-month low against sterling. The British pound dropped 0.58% to $1.3178, while the Japanese yen weakened 0.33% to 158.81 per dollar.