Dollar Surges to Near-Half-Year High on Inflation Fears

The U.S. dollar surged to its highest level since April 9, 2025, reaching nearly one-and-a-half years of peak at 102.03 on the U.S. dollar index.

This significant rise came as inflationary concerns increased following economic data showing U.S. manufacturers struggling with rising raw material costs, despite a softer-than-expected inflation report earlier in the week.

The Institute for Supply Management's (ISM) latest report revealed that the prices index rose to 77.9 in September from 71.1 in August, nearing its 78.3 level in March at the beginning of the U.S.-Iran conflict.

In other markets, France's budget bill for 2027 presented a public deficit target of 5% of GDP, contributing to the euro's decline by 0.7% to $1.1243 and its worst day since June 17.