Key Highlights

● The dollar index edged lower to 101.92 on Friday, October 30, 2026.

● The move was modest compared with stocks.

● The euro traded at $1.1166.

● The pound traded at $1.3389.

The dollar index, which measures the US currency against a basket of six major peers, edged lower to 101.92 on Friday, October 30, 2026. The decline was modest, especially compared with the turmoil in stocks, where the Nasdaq Composite had its worst day since June.

Elsewhere in currency markets, the euro traded at $1.1166 and the British pound at $1.3389. The dollar bought about 157.5 Japanese yen, after the Bank of Japan held its policy rate steady, according to market data.

Yields point the way

Reports on the session did not single out a specific cause for the dollar's dip. But it moved in the same direction as Treasury yields, which fell across the curve on Friday. The 2-year, 10-year and 30-year yields all ended lower, according to market data.

Currency traders watch interest-rate differences closely. When US yields fall relative to those elsewhere, holding dollars becomes slightly less rewarding, which can weigh on the currency. The 10-year Yield fell sharply over October, according to market data, and the 2-year yield ended a seven-month run of increases.

The Fed's hawkish lean

The dollar's slip came even though the Federal Reserve is leaning toward tighter policy. The Fed left its benchmark rate range unchanged at its October 27-28 meeting, with Governor Lisa Cook and Cleveland Fed President Beth Hammack dissenting in favor of a hike. Markets are pricing in a December increase, according to CME FedWatch data cited by market data.

On Friday, three Fed officials made the case for higher rates. St. Louis Fed President Alberto Musalem said, "I judge that additional firming of Monetary Policy will be necessary, and soon." Dallas Fed President Lorie Logan said she wants at least two more quarter-point hikes. Richmond Fed President Tom Barkin said, "I think the question though is pace."

Those comments did not lift the dollar on the day, a sign that other forces were at work in the market.

Turbulence elsewhere

Friday's markets were dominated by a selloff in technology stocks. The S&P 500 fell 140.32 points to 7,580.07, the Dow Jones Industrial Average dropped 572.25 points to 51,770.31 and the Nasdaq Composite lost 747.73 points to 25,437.00. Intel (NASDAQ:INTC)'s cash-burn warning set off a global chip rout.

Commodities moved in different directions. West Texas Intermediate crude rose $2.12 to $104.12 a barrel amid tensions around Iran and the Strait of Hormuz. Gold fell $132.50 to $3,898.90, a 52-week low. Bitcoin slid after a reported $6.3 billion hack of the Binance crypto exchange.

Economic data this week has mostly pointed to a strong US economy. Third-quarter gross domestic product beat forecasts and showed the fastest growth in a year, and weekly jobless claims fell to 194,000. September's personal consumption expenditures price index showed Inflation at its highest level since May. On Friday, the Chicago purchasing managers' index slid to 55.3, missing forecasts but staying in expansion territory.

What to watch

The October jobs report on Friday, November 6, is the next big test for the dollar. A strong report would support the case for a December hike and could lift yields and the currency, while a weak one could extend Friday's dip. The Institute for Supply Management's surveys next week also land before the Fed meets.

The midterm elections on Tuesday, November 3, add another source of potential volatility. Traders will also keep an eye on the yen near 157.5 per dollar, after the Bank of Japan's decision to hold rates.