Dollar Holds Near 8-Week High as Fed Officials Flag Inflation Risks; Euro Slips on Weak Sentiment

The dollar hovered near an eight-week high on Tuesday, September 22, 2026, extending gains after the Federal Reserve's rate hike last week, while the euro weakened following soft consumer confidence data. The dollar index (DXY), tracking the greenback against six major currencies, rose 0.1% to 100.54 in New York trading, its highest since July 29. The FOMC voted unanimously on September 16 to raise the federal funds rate to 3.75%-4.00% from 3.50%-3.75%, with updated projections showing at least 12 members expect another hike this year. Boston Fed President Susan Collins reiterated support for the decision, warning that elevated price pressures warrant a more restrictive stance. Richmond Fed President Tom Barkin said inflation risks now outweigh employment concerns. The euro fell 0.2% to $1.1448 after eurozone September consumer confidence weakened. The dollar was little changed at 157.38 yen. Oil's five-day slide and potential U.S.-Iran talks remained in focus, with Macquarie's Thierry Wizman noting energy prices continue to drive central bank policy and dollar strength.