The US Dollar Index (DXY) trades near 101.9 in early October 2026 after touching 102.21, buoyed by elevated Treasury yields—with the 10-year near 5.3%, its highest since 2007—and market pricing for additional Federal Reserve rate hikes beyond the recent move to a 3.75-4.00% target range. Resilient US growth, firm domestic demand, and sticky core PCE inflation around 3.0% have reinforced hawkish policy expectations, while geopolitical tensions and higher oil prices add to inflation risks. Recent softer core PCE and mixed labor data have tempered near-term hike odds, yet long-end yields continue to support the currency. Key upcoming releases include September CPI and the October FOMC meeting, which could clarify the policy path and influence DXY momentum.