DXY Rallies Near July High as Hawkish Fed and Geopolitical Tensions Boost Demand

The US Dollar Index (DXY) continued its upward momentum on Friday, reaching levels near 100.30 and staying firm throughout the European session.

This move comes after the Federal Reserve raised interest rates at its September meeting, marking the first increase since 2023, and also hinted at one additional hike this year.

The Fed's dot plot pointed to further tightening due to oil-driven inflation risks, which added to the case for a stronger US Dollar.

Tensions in the Middle East, particularly with Iran's Islamic Revolutionary Guard Corps striking a Togo-flagged tanker attempting an illegal passage through the Strait of Hormuz, also contributed to increased demand for the Greenback.