The US dollar climbed as much as 0.5% to 102.66 on Wednesday, reaching its highest level since April 2025 after fresh inflation figures strengthened expectations of further Federal Reserve tightening. Consumer prices increased 0.6% in September from the previous month, the fastest rise in five months, while annual inflation reached 3.7%. Although the headline figures were broadly in line with forecasts, underlying inflation proved more persistent than expected. Core CPI, which excludes food and energy, rose 0.3% monthly and 2.6% annually, reinforcing concerns that elevated energy costs are keeping price pressures high. At the same time, Brent crude continued to rise on escalating Middle East tensions and their potential impact on supply. However, Fed Vice Chair for Supervision Michelle Bowman said she saw no immediate need for another increase following last month’s hike, despite inflation remaining above target.