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22.10.202602:28:25UTC+00Dollar Stabilizes as Fed Meeting Eyed

The US dollar index hovered around 101.7 on Thursday, stabilizing after a recent decline as investors looked ahead to next week’s Federal Reserve policy meeting, where interest rates are widely expected to be left unchanged. Comments from Chair Kevin Warsh last Friday did little to alter expectations for a pause, though markets still see a potential rate hike in December amid continued inflation pressures driven by energy costs.

The European Central Bank and the Bank of Japan are likewise expected to keep interest rates on hold at their meetings next week.

At the same time, recent data signaled emerging weakness in the US economy: housing starts fell in September, and pending home sales dropped to a record low. Oil prices rose following a drone strike on Saudi Aramco’s Shaybah field that killed two people, while the United States ordered some personnel and family members to leave its embassies in Saudi Arabia, further stoking concerns about inflationary pressures.

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