Morning Edition · Wed 14 Oct 2026
Dollar Slips From 18-Month High as Euro Rebounds Before CPI
The dollar eased from its highest level in 18 months on Tuesday and the euro recovered, as traders waited for US inflation data.
Chanan Zevin - Chief Editor and Head of Desks
Published
The moves
The dollar index fell 0.33% to 102.25, after closing at 102.61 on Monday, its highest since April 2025, CNBC reported. The euro rose 0.3% to $1.1192; the European Central Bank's reference rate was $1.1188.
Fed expectations
Before the inflation report, CME FedWatch showed a 76% chance that the Federal Reserve holds rates at its October 27-28 meeting, CNBC said. Late-edition update: the Labor Department said on Wednesday that consumer prices rose 3.7% in September from a year earlier, up from 3.4% in August and slightly above forecasts, with core inflation at 2.6%, the Associated Press reported.
Why it matters
A hotter inflation print strengthens the case for higher US rates, which tends to support the dollar against the euro. What to watch: repricing of Fed odds after the CPI data and whether the dollar index retests 102.61.