U.S. CPI topped expectations, lifting the dollar and prompting traders to
increase bets on further Fed hikes. The Bloomberg dollar spot index jumped,
breaching last November’s high and rising as much as 0.4% intraday to its
strongest level since May 2025. BLS data showed U.S. consumer prices posted
their largest gain in five months, led by higher fuel costs. Monex FX trader
Andrew Hazlett said the stronger-than-expected CPI has pushed market pricing
toward additional Fed tightening. Through the four weeks to Oct. 9 the dollar is
up nearly 3%, its longest consecutive advance since early 2025; markets now
price cumulative further Fed hikes of more than 90 bps.