Recent strength in the US Dollar Index, trading near 101.05 as of September 25, reflects the Federal Reserve’s September 16 decision to raise the federal funds target range by 25 basis points to 3.75–4.00 percent, reinforced by updated projections signaling at least one additional hike by year-end. Robust September PMI readings, resilient labor market data with initial claims near 197,000, and surging Treasury yields—10-year notes above 5.1 percent and 30-year above 5.4 percent—have lifted market-implied odds of an October hike to roughly 67–75 percent. These factors, alongside persistent inflation concerns, have driven the DXY to eight-week highs and supported a second consecutive weekly advance. Traders will monitor upcoming consumer sentiment, durable goods orders, and further Fedspeak for signs of sustained policy divergence.