The US dollar strengthened again on Thursday (November 12), reaching a 19-month high, driven by growing market expectations for a Federal Reserve interest rate hike in December. The DXY dollar index hovered around 102.91, having touched 103.08—its highest level since April 2025.
The "greenback" gained further momentum as the market increased bets on a tighter monetary policy from the Fed. Persistent, high US inflation data has led investors to assign a higher probability to a December rate hike, thereby boosting the dollar's appeal.
The dollar's rise has also exerted pressure on the euro. The EUR/USD pair fell below the key support level of $1.1111, touching a low of $1.1065—its weakest level in 18 months. This movement underscores the strength of the dollar's momentum against major currencies.
According to analysts at KBC Bank, the dollar's recent strengthening could potentially continue. Expectations regarding US interest rates remain a primary factor supporting the greenback, especially as the market begins to price in the possibility of a more aggressive Fed policy.