US Dollar Index news for August 19, 2026

The US Dollar Index has been volatile, recently hitting two-month lows on fading Federal Reserve rate hike bets, but has since firmed as Middle East tensions, particularly around Hormuz, prompted safe-haven demand. The conflicting forces have left the index sensitive to both geopolitical headlines and monetary policy expectations, with Washington-related factors also cited as a drag on rallies.

Updated 13:27 UTC

How the day unfolded

1. 00:29 UTC

   The US Dollar Index remains under pressure as fading expectations for a Federal Reserve rate hike have led traders to push back on hawkish bets, sending the currency to multi-month lows. While geopolitical jitters around the Middle East have at times supported the dollar, the broader trend is driven by shifting monetary policy expectations, with the index recently trading near 99.50 after attempting to recover from its lows.

2. 03:29 UTC

   The US Dollar Index sank to two-month lows as expectations of further Federal Reserve rate hikes faded, with Goldman Sachs calling a September hike unlikely as inflation eases. The dollar then firmed slightly on Middle East jitters related to the Strait of Hormuz, recovering above 99.50. The index remains sensitive to shifts in Fed policy bets and geopolitical risk sentiment.

3. 06:34 UTC

   The US Dollar Index is being driven lower by fading expectations that the Federal Reserve will raise rates, with Goldman Sachs calling a September hike very unlikely and market odds slipping. However, Middle East tensions, particularly around Hormuz, have intermittently supported the currency as a safe haven, leading to a recovery from two-month lows. Mixed signals from these drivers are keeping the dollar volatile.

Headlines (12)

• United States Dollar Index weakens to near 99.50 as traders push back Fed rate hike bets
  www.fxstreet.com · Aug 17, 02:54 UTC
• Odds of Fed Rate Hike This Year Fall as Goldman Sachs Warns Against Hawkish Bets
  coingape.com · Aug 17, 08:44 UTC
• Dollar Falls Sharply on Fading Prospect of Federal Reserve Raising Rates
  www.wsj.com · Aug 17, 09:06 UTC
• The Yen: Has the Trend Finally Been Broken?
  www.actionforex.com · Aug 17, 13:35 UTC
• Why the Dollar Hit a 3-Month Low and Bitcoin Only Moved 0.7%
  beincrypto.com · Aug 17, 14:39 UTC
• Forex Today: US Dollar sags to two-month lows as Middle East risk lifts Oil and Gold
  www.fxstreet.com · Aug 18, 00:17 UTC
• The US Dollar Index cannot rally with Washington on the offer
  www.fxstreet.com · Aug 18, 00:17 UTC
• Goldman calls September Fed hike very unlikely as inflation eases
  investinglive.com · Aug 18, 00:48 UTC
• United States Dollar Index extends recovery from two-month low; trades above 99.50
  www.fxstreet.com · Aug 18, 07:56 UTC
• Australian Dollar declines from two-month highs as Hormuz tensions lift the US Dollar
  www.fxstreet.com · Aug 18, 16:26 UTC
• Forex Today: US Dollar firms on Hormuz jitters ahead of UK CPI and FOMC Minutes
  www.fxstreet.com · Aug 18, 19:55 UTC
• Euro strengthens above 1.1550 on fading Fed hike bets
  www.fxstreet.com · 00:49 UTC

Scheduled events

As of 13:27 UTC

• 2026-08-19 — Wage Price Index q/q · forecast 0.8% · AUD
• 2026-08-19 — RBA Deputy Gov Hauser Speaks · AUD
• 2026-08-19 — PPI Output m/m · forecast 0.2% · GBP
• 2026-08-19 — RPI y/y · forecast 3.3% · GBP
• 2026-08-19 — PPI Input m/m · forecast 0.0% · GBP
• 2026-08-19 — Core CPI y/y · forecast 2.5% · GBP
• 2026-08-19 — CPI y/y · forecast 2.9% · GBP
• 2026-08-19 — Current Account · forecast 26.8B · EUR