Dollar Heads for Longest Winning Streak Since 2025 on Oil, Fed Rate Bets

The dollar is on track for its longest winning streak in nearly two years, as elevated oil prices and expectations of further Federal Reserve rate hikes drive the Bloomberg Dollar Spot Index toward a roughly 3% gain over four weeks. Rising oil prices tied to new Iranian military activity have raised concerns about Middle East supply routes, pushing investors toward the dollar as a haven. The euro touched its lowest level since May 2025 earlier this week, weighed down by French fiscal concerns and high energy costs, according to Bloomberg. Fed Governor Christopher Waller said Thursday in Istanbul that additional tightening would likely be required to return inflation to the Fed's 2% target. The Fed raised its policy rate by 25 basis points to a range of 3.75% to 4% at its September meeting, its first increase in three years. Futures markets as of Wednesday showed an 85% chance of at least one hike by the December meeting, Bloomberg reported.