The US dollar held at a two-week high on October 28, 2026, as traders awaited a Federal Reserve policy decision and signals about the possibility of an interest-rate move in December.

US dollar steadies before Fed decision

Fed funds futures implied a 91% probability that the Federal Open Market Committee would leave its policy rate unchanged, according to CME Group’s FedWatch tool. Traders were also watching for indications of how likely a December rate move might be.

The dollar index, which measures the currency against six peers, rose 0.3% on October 27 to 102.40, its highest level since October 14. The euro was flat at $1.1129 and the British pound was unchanged at $1.3307. The dollar was last 0.1% weaker against the yen at 157.81.

Australian dollar rises after inflation data

The Australian dollar gained 0.3% to $0.7047 after data showed inflation of 1.3% in the third quarter, compared with 0.6% in the previous quarter. Trimmed mean core inflation was 1%, matching market estimates, while its annualised rate remained above target at 3.6%.

Reserve Bank of Australia Governor Michele Bullock told lawmakers that policymakers would debate at their meeting the following week whether four rate hikes during the year would be sufficient to return inflation to target. The New Zealand dollar was flat at $0.5682 ahead of a Reserve Bank of New Zealand decision, at which economists generally expected a rate increase.

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