The US dollar recovered part of its losses on Wednesday, 7 October 2026, amid anticipation of the minutes from the Federal Reserve's September meeting and speeches by its officials.
The dollar index rose by 0,16% to 102,07, recovering after a fall of 0,27% on Tuesday. The euro declined by 0,25% to 1,123 dollars, the yen weakened by 0,19% to 158,39 per dollar, and the pound sterling lost 0,21% to 1,3244 dollars.
Markets are preparing for the release of the Fed's minutes from its September meeting, at which the regulator raised rates to combat inflation. Softer US consumer spending and employment data reduced expectations of an immediate rate hike in October.
The probability of a Fed rate hike in October fell to 20,5% from about 51% a week earlier, according to CME FedWatch. At the same time, markets assess the chances of a hike in December at 84,5%.
Comments from Fed representatives became less hawkish after weak PCE and labor market data. Gavin Friend, senior markets strategist at National Australia Bank, noted that the regulator has "slightly less urgency" regarding a rate hike.
The dollar also received support as a safe-haven asset after the Houthi attack on Aden International Airport in Yemen. Additional context is provided by expectations of further steps by the Bank of Japan: board member Ayano Sato supported a gradual increase in rates.
Later on Wednesday, Fed members Christopher Waller, Neel Kashkari and Alberto Musalem will speak. How these signals will affect further currency dynamics remains to be seen.
The Australian dollar weakened by 0,14% to 0,6972 US dollars, the New Zealand dollar by 0,28% to 0,5605. Bitcoin fell by 1,76% to 84 115,47 dollars, and ether by 3,3% to 2 609,57 dollars.
