DXY Breaks Through 100: Dollar Rises on Higher-for-Longer Trade

The US Dollar Index (DXY) has finally broken through the psychologically important 100 handle and is holding strong above it, trading around 100.5-100.7 as of Tuesday's session.

This break comes after the Federal Reserve's decision to raise the federal funds target by 25 basis points to 3.75-4.00 per cent on September 16, which was a unanimous 12-0 vote under Chair Kevin Warsh.

Markets had largely priced in the hike itself, but what they hadn't fully anticipated was the tone of the statement, which dropped earlier language blaming elevated inflation partly on 'supply shocks.'