Dollar Inches Lower, Remains Elevated on Fed Rate-Rise Prospects -- Market Talk

0652 GMT - The dollar edges slightly lower but remains at elevated levels after reaching a three-week high on Thursday as a surge in energy prices boosted expectations for the Federal Reserve to raise interest rates. The market is now pricing a 33% chance the Fed could raise rates by 25 basis points on July 29 and is fully pricing a move by September, according to LSEG. The growing Middle East conflict has lifted energy prices, with the U.S. military saying late Thursday it completed its 13th consecutive night of strikes on Iran. While oil prices stabilize somewhat Friday, they remain high. The DXY dollar index falls 0.1% to 101.384, pulling back only marginally from the high of 101.544 reached Thursday.(renae.dyer@wsj.com)

(END) Dow Jones Newswires

July 24, 2026 02:52 ET (06:52 GMT)