US dollar rises as investors await Fed minutes

The US dollar strengthened against major currencies today, Oct. 7, as investors turned their attention to the release of the Federal Reserve’s latest meeting minutes for clearer guidance on the future trajectory of interest rates.

The US Dollar Index, which tracks the greenback against a basket of six major currencies, rose 0.30% to 102.14 points during morning trading.

According to the CME FedWatch Tool, expectations for a rate hike at this month's meeting dropped sharply to 20.5%, down from approximately 51% a week ago, following weaker-than-expected consumer spending and labor market data released last week.

However, markets continue to price in an 84.5% probability of a rate hike at the December meeting, as central bankers remain focused on curbing inflationary pressures and managing global fiscal stability.

*At 10:42 am Makkah time.