Morning Edition · Tue 13 Oct 2026
Dollar Holds Near 18-Month High on Safe-Haven Demand
The dollar held near its strongest level in a year and a half on Monday as the escalating Middle East conflict kept investors cautious ahead of Wednesday's US inflation data.
Chanan Zevin - Chief Editor and Head of Desks
Published
Safe-haven bid
The dollar index was slightly down at 102.14 in early Asian trade on Monday, October 12, but stayed close to the 18-month peak it reached last week, Reuters reported via The Jakarta Post. The euro was up nearly 0.1% at $1.121 after a fifth straight weekly loss, and the dollar was down 0.14% at 158.160 yen, with Japanese markets closed for a holiday.
“We expect the Houthis to continue their attacks on Saudi Arabian energy assets, supporting gains in the oil price and the USD,” analysts at Commonwealth Bank of Australia wrote, according to Reuters.
Speculators pile in
Investors' bullish dollar positions rose to around $36 billion in the week to October 7 from $8.4 billion three weeks earlier, largely at the expense of the euro, according to US regulator data cited by EconoTimes. The euro dipped later on Monday as the dollar drew safe-haven demand, the outlet reported.
CPI decides the next move
Traders priced an 81% chance that the Federal Reserve holds rates at its late-October meeting, up from 51% a month earlier, according to the CME FedWatch tool cited by Reuters. Barclays analysts said the dollar's rally may be due for a pause, particularly if Wednesday's consumer price report comes in soft.