The moves
The dollar index fell 0.33% to 102.25, after closing at 102.61 on Monday, its highest since April 2025, CNBC reported. The euro rose 0.3% to $1.1192; the European Central Bank's reference rate was $1.1188.
Fed expectations
Before the inflation report, CME FedWatch showed a 76% chance that the Federal Reserve holds rates at its October 27-28 meeting, CNBC said. Late-edition update: the Labor Department said on Wednesday that consumer prices rose 3.7% in September from a year earlier, up from 3.4% in August and slightly above forecasts, with core inflation at 2.6%, the Associated Press reported.
Why it matters
A hotter inflation print strengthens the case for higher US rates, which tends to support the dollar against the euro. What to watch: repricing of Fed odds after the CPI data and whether the dollar index retests 102.61.