Dollar Reaches Two-Month High as Fed Tightening Bets Reshape Asian FX Risk

London, 23 September 2026 – The US dollar climbed to its strongest level in about two months as investors put the Federal Reserve’s tightening outlook ahead of a partial retreat in oil prices. The move renewed pressure on currencies whose central banks have less room to follow higher US rates, making exchange-rate risk a central question for Asian importers, borrowers and portfolio managers.

The dollar index, which measures the currency against six major peers, rose 0.24% to 100.79 in European trading. The euro slipped 0.25% to US$1.142, while sterling lost 0.3% to US$1.3305. These are intraday observations, not closing prices, and they should be read alongside the market’s changing view of interest-rate differentials rather than as a stand-alone verdict on growth.