US Dollar Holds Steady Near 18-Month High Amid Mideast Conflict and Inflation Focus

11:23 - 12.10.2026


October 12, Fineko/abc.az. The US dollar index held firm near its 18-month peak (around 102.14) on Monday, underpinned by safe-haven demand stemming from escalating Middle East tensions and market anticipation of upcoming US inflation data. Caution dominated currency markets as geopolitical risks continued to influence investor sentiment.

Traders are closely watching this week's release of the US Consumer Price Index (CPI) and Producer Price Index (PPI) to gauge the Federal Reserve's monetary policy path. According to the CME FedWatch tool, expectations surrounding sustained inflation keep the dollar supported, as market participants evaluate potential interest rate trajectories.