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Dollar slips as Fed October rate hike bets cool
In brief
The US dollar slipped from an 18-month high on Thursday, October 15, 2026, as Treasury yields dropped and several Federal Reserve officials suggested the central bank could wait before raising interest rates. Market odds of an October hike had jumped to about 50% after Wednesday's hotter-than-expected inflation report, Reuters reported.
What moved markets
The dollar index, which tracks the US currency against a basket of major currencies, was down about 0.2% at 102.03, according to Reuters and CNBC. It had touched an 18-month high a day earlier, after consumer prices rose 3.7% over the past year in September.
Investors then bought US government bonds as a safer place for their money, which pushed yields lower. The 10-year Treasury yield fell to about 5.09% and the 30-year to about 5.43%, both near three-week lows, the reports said. The euro rose about 0.5% to roughly $1.12.
What the Fed said
Fed Vice Chair for Supervision Michelle Bowman and San Francisco Fed President Mary Daly were among officials who said the Fed could wait for a clearer picture before its October 27–28 meeting, Reuters reported. One analyst quoted by Reuters noted that the meeting falls just days before the November 3 midterm elections.
What comes next
US retail sales and producer price figures were due later on Thursday, and Fed Chair Kevin Warsh is set to speak at IMF and World Bank meetings in Bangkok on Friday.
Higher rates change loan and savings maths. Try our loan EMI calculator or compound interest calculator, check exchange rates in the currency converter, and read yesterday's US inflation report summary.
General news summary, not financial advice. ViralScopeHub is not affiliated with the Federal Reserve or any bank.
Why it matters
If the Fed raises rates, borrowing for homes, cars and credit cards usually gets more expensive, while savings accounts may pay a little more.
Related free tools: Loan EMI Calculator, Compound Interest Calculator, Currency Converter
Sources
- Reuters (via Investing.com): Dollar eases from 18-month high as Treasury yields fall; Fed hike bets ease
- CNBC: Dollar pulls back from 18-month high as Treasury yields fall; Fed hike bets ease
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