Dollar Holds Near 18-Month High as Fed Signals Caution

Dollar Remains Near Recent High

The US dollar remained close to its highest level in around 18 months during early Asian trading on October 8, 2026. The market remained relatively quiet as investors assessed recent Federal Reserve meeting minutes and the central bank's view on inflation.

Dollar Index Holds Above 102

The dollar index, which tracks the US currency against a basket of six major currencies, was steady at 102.23 after gaining 0.3 percent on Wednesday. The dollar remained close to its strongest level since April 2015.

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Federal Reserve Minutes Draw Attention

Minutes from the Federal Open Market Committee meeting showed that Federal Reserve policymakers remained concerned about inflation. The minutes also revealed differences among officials over the reasons behind the decision taken at the September meeting.

Interest Rate Decision in Focus

Federal Reserve policymakers unanimously approved a 0.25 percentage point interest rate increase at their September 15 and 16 meeting. However, the latest minutes did not significantly change market expectations that the central bank may hold rates steady at its next meeting later this month.

Dollar Moves Against Yen

The dollar fell 0.2 percent against the Japanese yen to around 157.815 yen. The move came after Japan reported a current account surplus of 4.062 trillion yen, or about $25.7 billion, in August. The figure was higher than the average economist forecast of 3.19 trillion yen.

Other Major Currencies

Other major currencies showed limited movement during Asian trading. The Australian dollar was around $0.6960, while the New Zealand dollar stood near $0.5600. The euro traded at about $1.1201, while the British pound remained around $1.3215.

Chinese Yuan and Global Market Outlook

The dollar was steady at around 6.7015 yuan in offshore trading. Investors are continuing to monitor Federal Reserve policy, inflation data and currency movements as these factors influence global financial markets and expectations for interest rates.