High Energy Prices, Fed Rate-Rise Prospects Could Keep Dollar Supported

A facts-only brief, written by a local AI model from this article in The Wall Street Journal, October 26, 2026. It may contain mistakes, and it is not the article: the full story is at wsj.com.

The U.S. dollar trades steady near 101.80 as investors await the Federal Reserve’s interest-rate decision on Wednesday, with markets pricing a 90% probability of a hold. ING’s Chris Turner notes that elevated energy prices and a likely restrictive policy stance support the greenback, while Monex Europe analysts suggest the Fed may keep a December rate hike in play without formal guidance. In other currency markets, sterling falls to a near one-week low of $1.3350 ahead of the U.K. budget, where the Financial Times reports Treasury chief John Healey is expected to allocate 20.4 billion pounds to the state’s business lender. The euro remains under pressure near $1.1206 due to persistent concerns about France’s debt, despite Moody’s maintaining the country’s Aa3 rating on Friday.

Background

• U.S. Treasury yields are mixed, with the two-year yield rising 1.7 basis points to 4.699% and the 10-year yield up 0.2 basis points to 4.988%, according to Tradeweb.
• Bitcoin drops 0.5% to $80,001, reflecting geopolitical uncertainty and technology-sector losses, per Zaye Capital Markets analyst Naeem Aslam.
• The New Taiwan dollar is expected to rebound after weakening by approximately 2.5% against the dollar, driven by net foreign equity outflows and rising oil prices, according to Goldman Sachs analysts.
• Asian currencies generally consolidate against the dollar, with the yen trading at 157.02 and the won at 1,321.60, as traders focus on the upcoming Federal Open Market Committee meeting.

Read the full article at wsj.com

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