US Dollar Extends Rally as Fed Hawks Keep Inflation in Focus

The US Dollar (USD) continued its upward momentum this week, reaching its highest level since late July near 101.40 before consolidating and correcting lower to 101.00 on Friday.

This rally was fueled by hawkish comments from Federal Reserve officials, who highlighted the need for further interest rate hikes to combat stubbornly high inflation.

Philadelphia Federal Reserve President Anna Paulson's speech on Thursday noted that the September hike had merely moved policy into a better inflation-fighting posture, and that underlying inflation remained a concern.

The US economic calendar will feature Durable Goods Orders data for August and a revision to the September Consumer Sentiment Index from the University of Michigan.