Dollar Surges to 18-Month High, Euro Hits 17-Month Low as Bitcoin Holds Steady
The US dollar has reached a nearly 18-month high, with the DXY index hitting 102.5 on Monday. This is a significant milestone, as it indicates a strengthening of the dollar against a basket of six major currencies. The euro, which accounts for 57.6% of the DXY basket, has fallen to a 17-month low against the dollar, trading at around 1.12.
The dollar's strength is largely due to the Federal Reserve's decision to raise interest rates by 25 basis points to 3.75% to 4% in September. Markets are now pricing in further tightening, with a target range of 4.5% to 4.75% emerging as the most likely outcome by June 2027.
Bitcoin, however, remains resilient, holding steady around $86,000 despite the headwinds. A stronger dollar typically creates challenges for risk assets, but Bitcoin's price has not been significantly affected.