Dollar Volatility Soars as Inflation Fuels Rate Hike Speculation

The US dollar experienced a volatile day on September 11, 2026, as inflation data pushed traders to bet on a Federal Reserve interest rate hike. The Bloomberg Dollar Spot Index initially rose by up to 0.2%, reaching its highest level in a week, after the core monthly inflation data for August surpassed expectations, increasing by 0.3% above the predicted 0.2%. However, this increase was short-lived as falling oil prices weighed on the greenback.

The Bloomberg Dollar Spot Index had regained some ground earlier in the day, but it ultimately traded 0.1% lower at 10:36 a.m. in New York. The inflation data, while not as high as some traders had anticipated, did provide further evidence that the Federal Reserve may raise interest rates next week.