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Dollar Index This Week (to Oct 23): Dips 0.09% as Yen, Aussie Gain

The dollar ended a choppy week almost flat while the yen, Australian dollar and Brazilian real gained and the euro and Mexican peso slipped. Brent above $116 and six central bank decisions in nine days frame what comes next.

By Rowan Ashby Published 23.10.26 21:39 UTC 7 min read

ICE US Dollar Index - Index - C price chart over the past 5 days, -0.07% — Illustration: Bullquill chart, data: Yahoo Finance (original)

Key takeaways

The US Dollar Index (DXY) slipped 0.09% this week, from 101.84 to 101.75 at the Friday, October 23 close, after trading between 102.08 and 101.45.
USD/JPY fell 0.75% to 156.81 after Japan's September inflation reached 2.1% and a tech-stock selloff lifted demand for the yen as a safe haven.
AUD/USD rose 1.28% to 0.7038 and USD/CAD fell 0.95% to 1.4002 as markets priced tighter policy at the Reserve Bank of Australia and the Bank of Canada.
EUR/USD fell 0.36% to 1.1204 as France's 10-year bond yield rose above 5% and eurozone business activity slowed to a four-month low.
In emerging markets, USD/BRL fell 2.05% to 4.9652 two days before Brazil's presidential runoff, while USD/MXN rose 0.91% to 18.6480.

Week in review

The dollar ended a choppy week almost unchanged on the index, but individual currencies moved much more. The Australian dollar, the yen and the Brazilian real gained, while the euro and the Mexican peso weakened, as rising oil prices and next week's central bank meetings pulled currencies in different directions. For the wider picture, see Asian and global markets today and our earlier forex brief for October 21.

Major and emerging-market exchange rates, week of October 19–23, 2026 (New York close unless noted)
Instrument	Prior week close (Fri)	Week close (Fri)	Weekly change	% change	Week high / low	As of (UTC)	Source
US Dollar Index (DXY)	101.84	101.75	−0.09	−0.09%	102.08 / 101.45	2026-10-23 21:00	ICE via Yahoo Finance
EUR/USD	1.1244	1.1204	−0.0040	−0.36%	1.1259 / 1.1187	2026-10-23 21:00	Yahoo Finance
USD/JPY	157.99	156.81	−1.18	−0.75%	158.59 / 156.07	2026-10-23 21:00	Yahoo Finance
GBP/USD	1.3329	1.3375	+0.0046	+0.35%	1.3417 / 1.3305	2026-10-23 21:00	Yahoo Finance
USD/CNY	6.6768	6.6697	−0.0071	−0.11%	6.6862 / 6.6595	2026-10-23 21:00	Yahoo Finance
AUD/USD	0.6949	0.7038	+0.0089	+1.28%	0.7041 / 0.6962	2026-10-23 21:00	Yahoo Finance
USD/CAD	1.4137	1.4002	−0.0135	−0.95%	1.4127 / 1.3964	2026-10-23 21:00	Yahoo Finance
USD/CHF	0.8236	0.8241	+0.0005	+0.06%	0.8268 / 0.8191	2026-10-23 21:00	Yahoo Finance
USD/IDR (ECB-implied)	18,031.00	18,107.80	+76.80	+0.43%	18,107.80 / 17,985.35	2026-10-23 12:15	ECB reference rates
USD/INR	94.9500	94.9300	−0.0200	−0.02%	95.0370 / 94.1529	2026-10-23 21:00	Yahoo Finance
USD/KRW	1,334.20	1,323.66	−10.54	−0.79%	1,337.16 / 1,319.52	2026-10-23 21:00	Yahoo Finance
USD/BRL	5.0693	4.9652	−0.1041	−2.05%	5.0660 / 4.9636	2026-10-23 21:00	Yahoo Finance
USD/MXN	18.4790	18.6480	+0.1690	+0.91%	18.8549 / 18.3653	2026-10-23 21:00	Yahoo Finance

Notes: Prior-week closes are for Friday, October 16, at 21:00 UTC; DXY uses ICE daily closes. Highs and lows are Yahoo Finance daily ranges (USD/CNY: hourly). USD/IDR is a Bullquill calculation from ECB reference rates (EUR/IDR ÷ EUR/USD) because rupiah quotes differed widely between providers; its high/low are daily reference values. ECB rates confirm the direction of the other pairs.

Day by day

Monday, Oct. 19: DXY closed at 101.98. The Canadian dollar stayed near a one-month high after Canadian inflation rose to 3.1% in September, according to Trading Economics.
Tuesday, Oct. 20: DXY fell to 101.73 as AI-related stock worries, lower oil prices and weak US housing data weighed on the dollar, according to Trading Economics.
Wednesday, Oct. 21: UK inflation rose to 3.5% (ONS) and sterling reached $1.34. Bank Indonesia held its policy rate at 5.75% but raised its deposit facility rate to 5% (Bisnis.com, IDNFinancials). DXY closed at 101.78.
Thursday, Oct. 22: USD/JPY fell more than 0.8% and the 10-year Treasury yield dropped below 5% for the first time in a month as the Nasdaq Composite lost nearly 3%, FXStreet reported. DXY closed at 101.61, near its weekly low.
Friday, Oct. 23: Japan's CPI rose 2.1% from a year earlier and the yen touched 156.37, a five-week high (Trading Economics). Brent crude rose 3.30% to $116.82 a barrel. The real rallied in late trade, and DXY closed at 101.75.

What drove it

Oil and the Middle East

Brent reached its highest level since June 2022 on Friday as expectations grew of renewed US strikes on Iran, according to Trading Economics, which cited President Trump saying Washington was not negotiating with Tehran. Expensive oil raises import bills for the eurozone and Japan and adds to inflation pressure, which helps explain why markets are pricing tighter policy at several central banks. Our explainer on how oil price shocks hit inflation and rates covers the mechanics.

The Fed and US yields

The Fed's target range is 3.75%–4.00% after its September hike. Trading Economics reported that markets price about a 91% chance of no change on October 28 and roughly 76%–80% odds of a hike in December. ING said the dollar was supported by the "rock-solid short-end" of the yield curve, FXStreet reported, even as Thursday's fall in long-term yields limited its gains.

Japan: inflation and haven demand

September inflation reached a nine-month high, and traders now expect another Bank of Japan hike this year, possibly in December, according to Trading Economics, which also linked haven demand to a tech selloff over Meta's spending plans. Details are in our report on Japan's September inflation.

Commodity currencies and rate expectations

RBA Deputy Governor Andrew Hauser said the inflation outlook was "materially worse," and markets raised the odds of a November hike to 64%, Trading Economics reported. In Canada, Governor Tiff Macklem said the Bank of Canada expects to raise its inflation forecast significantly, supporting the loonie before its October 28 decision.

Europe

France's 10-year yield rose above 5%, its highest since 2002, amid worries about public finances and social unrest, and eurozone private-sector growth slowed to a four-month low in October, according to Trading Economics. Sterling held up better: markets fully priced a Bank of England hike in November after the CPI data.

Emerging markets

The peso hit a one-year low near 18.78 per dollar on October 22 as expected Banxico easing and possible Fed hikes narrowed Mexico's interest-rate advantage, according to Trading Economics. The real rallied late on Friday after a Datafolha poll showed the runoff candidates tied at 50% and mid-October inflation came in below forecast; the cause of the late move has not been confirmed. The rupiah ended slightly weaker on ECB data.

Political & policy watch

Brazil: Senator Flávio Bolsonaro and President Lula meet in the October 25 runoff. Some investors see a Bolsonaro government as more likely to cut spending, Trading Economics reported; no concrete plan has been published.
United States: FXStreet and Trading Economics cite the November 3 midterms and the Iran conflict as key dollar risks.
United Kingdom: Chancellor John Healey presents the Budget on October 28 and is expected to stress fiscal discipline, Trading Economics reported.
France and Mexico: French political uncertainty and stalled USMCA talks have weighed on the euro and the peso, according to Trading Economics.

What to watch next

October 25: Brazil presidential runoff.
October 28: FOMC decision (statement at 18:00 UTC), Bank of Canada decision and UK Budget.
October 29: ECB decision; US Q3 GDP and September PCE inflation at 12:30 UTC (BEA).
October 30: Bank of Japan decision and Outlook Report after its October 29–30 meeting.
November 3: RBA decision and US midterm elections. November 5: Bank of England decision.

Risk checklist for readers

Read the quote direction. A lower USD/JPY means a stronger yen; a higher EUR/USD means a stronger euro.
Reference rates are not trading prices. ECB rates are set once a day and can differ from New York closing quotes.
Central bank cluster. Six major decisions between October 28 and November 5 can move currencies sharply, especially when a result differs from market pricing.
Weekend gap risk. Votes such as Brazil's Sunday runoff can cause price gaps when markets reopen.
Intervention risk. Official action can move a currency such as the yen several percent within minutes.
Leverage magnifies losses. Margin trading can cause losses larger than the money put in.

Frequently asked questions

What is the US Dollar Index (DXY)?

The DXY measures the dollar against six major currencies: the euro, yen, pound, Canadian dollar, Swedish krona and Swiss franc. The euro has the largest weight, so moves in EUR/USD strongly influence the index.

Why can the dollar index be flat while individual currencies move a lot?

The index covers only six currencies and is dominated by the euro. In the week to October 23, 2026, a weaker euro offset gains in the yen and the Canadian dollar, so the DXY moved just 0.09% while AUD/USD, which is not in the index, rose 1.28%.

What usually moves exchange rates in a given week?

Interest-rate expectations and central bank decisions, inflation and jobs data, oil and other commodity prices, elections and geopolitical events, and shifts in risk sentiment such as stock-market selloffs.