Central Banks

    Dollar Index Rises 0.8% to 101.04 as Fed Rate Expectations Surge

    2 min read
    210 words
    Updated Sep 27, 2026

    The US Dollar Index climbed 0.81% to 101.04 in the week ending September 27, 2026, hitting a two-month high as initial jobless claims fell to 197,000 and markets priced in a 68.6% chance of an October Fed rate hike.

    Written and reviewed by Kevin Nerway · Last verified 27 September 2026

    Key Takeaways

    • The US Dollar Index (DXY) surged 0.81% across the weekly session ending September 27, 2026, breaking past 101.04 to secure a two-month peak.
    • Market pricing for a Federal Reserve rate hike of at least 25 basis points in October jumped from 43.5% to 68.6% following persistent hawkish central bank commentary.
    • US Treasury yields expanded aggressively, with the 30-year yield hitting its highest mark since June 2004 and 10-year yields touching multi-decade highs.
    • Initial jobless claims printed at 197,000 against a 201,000 forecast, underscoring labor market resilience and curbing expectations for near-term rate cuts.

    On September 27, 2026, the US Dollar Index (DXY) capped off an aggressive weekly push, gaining 0.81% to reach 101.04 after briefly breaking key overhead resistance to hit a two-month high. At our PropFirmScan desk, we tracked this rally across global trading sessions as hawkish signals from the Federal Reserve combined with robust domestic economic data to force a rapid repricing of short-term interest rate futures.

    Early in the week, institutional flows began tilting heavily into the greenback as traders re-evaluated the central bank's tightening trajectory. The probability of the Fed delivering a rate hike of at least 25 basis points at its upcoming October meeting was priced at 43.5% just a week prior. By early

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