Fed Tightening Isn't Start of Dollar-Strengthening Trend -- Market Talk

0541 GMT - The Federal Reserve's decision to raise rates doesn't necessarily mark the start of a sustained upward momentum in the dollar, DBS's Philip Wee writes. "This is not the U.S.-led hiking cycle in 2022," says the foreign-exchange strategist. The Fed is catching up with major central banks in responding to inflation risks and preventing energy price shocks from generating second- and third-order effects across the economy, he notes. The Treasury market also remains a key drag on confidence, with yields staying firm on 10-year and 30-year Treasurys, suggesting that the struggle over long-term borrowing costs is unresolved, Wee adds. DBS sees the DXY dollar index remaining in the 96-102 range established since mid-2025. The DXY is flat at 100.278. (farah.elias@wsj.com)

(END) Dow Jones Newswires

September 17, 2026 01:41 ET (05:41 GMT)