Dollar Index Surges Past June Peak as Crude Oil Prices Bite Euro

The Dollar Index has broken its June peak and is trading near 102.10, its highest level since April 2025. This comes as the Euro sinks on dearer Crude Oil prices, with the index moving in tandem with the two assets rather than the odds of a Federal Reserve rate hike.

The Fed raised interest rates to 3.75-4.00% last month, and while some officials have expressed caution about raising rates again soon, futures markets still price close to four hikes by the end of 2027.

However, the odds of an October rate hike have roughly halved since Monday, and the Dollar Index has risen on every day since then. The index is being driven by rising Crude Oil prices, which are adding to the import bill in Europe and Japan, while increasing income for US exporters.