Dollar slips with oil prices as geopolitical risks seen easing before midterms
TLT•The dollar index fell 0.30% to 102.26 as oil prices retreated and investors weighed the risk of conflict escalation and the Federal Reserve’s rate path. The euro rose 0.32% to $1.1190, while the yen gained 0.36% to 158.04 per dollar.
1. Dollar and oil retreat
The dollar slipped from an 18-month high on Tuesday as oil prices eased and investors hoped the Middle East conflict would remain contained ahead of U.S. midterm elections. The dollar index fell 0.30% to 102.26 after reaching 102.61 on Monday.
2. Rate outlook in focus
Investors turned their attention to Wednesday’s September U.S. inflation data for clues on the Federal Reserve’s rate path. Traders saw an 80% chance the Fed would leave rates unchanged this month, up from 51% a month earlier, and priced in about 75 basis points of tightening by late 2027. The euro rose 0.32% to $1.1190, while the yen strengthened 0.36% to 158.04 per dollar.
