US dollar index set for monthly gain after 3 months
The US dollar index was headed for a 0.47% monthly gain in February 2026, breaking its losing streak since last October.
This boost came after January's Producer Price Index (PPI) rose more than expected, hinting that inflation is still a concern.
A stronger dollar generally makes imports cheaper, is a headwind for exporters, and gives the Federal Reserve more reason to keep interest rates steady.
Unemployment and potential rate cuts in focus
If you're watching the economy or thinking about travel or online shopping, a strong dollar can affect prices and global markets.
With concerns about a weakening labor market this year (2026) and possible rate cuts ahead, investors are keeping an eye on what comes next.
Euro slips, while dollar gains ground against yen
Some analysts say technicals and market positioning suggest the dollar could climb further.
The euro is slipping a bit this month, while the dollar has gained ground against the yen.
Plus, China's currency moves and rising tensions between the US and Iran—alongside higher oil prices—are all adding fuel to the dollar's comeback story.