US Dollar Index Rose Above 100 to Seven-Week High
The strengthened dollar increases costs for firms reliant on imported goods and international supply chains.
Updated on Sept. 23, 2026 in Inflation
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The US dollar index climbed to 100.60 on September 22, 2026, marking a 0.25% daily increase and a seven-week high. This shift occurs as national inflation has persisted above the 2% target for over five years.
Why it matters
A stronger dollar typically elevates the cost of imported raw materials and components, tightening margins for businesses that depend on global suppliers. Operators must now navigate these currency fluctuations alongside a labor market characterized by a 4.1% unemployment rate.
The US dollar index reached 100.60, a 0.25% daily increase that pushed the benchmark above the 100 level. This gain follows an economic period featuring a 3.7% July PCE inflation rate and an August unemployment rate of 4.1%.
The details
The dollar index tracks the greenback against a basket of foreign currencies, meaning its rise generally makes US exports more expensive while lowering costs for imports. For operators, this fluctuation can be a double-edged sword: it may lower the cost of foreign-sourced inventory but reduce the competitiveness of American-made products in overseas markets. Businesses should monitor how this currency strength impacts their current procurement contracts.
Timeline
July 2026: The headline PCE inflation rate reached 3.7%.
August 2026: The US unemployment rate was 4.1%.
September 22, 2026: The US dollar index rose 0.25% to break above 100.
Market Landscape
The index rise unfolds against a persistent backdrop where inflation has exceeded the Federal Reserve inflation target of 2% for more than five years. This currency trend follows a record-breaking streak where the unemployment rate has remained at or below 4.5%.
Business owners should review their foreign exchange exposure and procurement budgets in light of the stronger dollar. If your supply chain relies on international partners, evaluate whether current contracts include currency hedging to protect your margins.
The takeaway
The dollar's move above the 100 threshold signals potential margin pressure for companies reliant on global trade. Monitor your cost-of-goods-sold metrics against these currency fluctuations to determine if a pricing adjustment is necessary for your product lines.
Further reading
For broader context on how shifting currency values and price pressures impact national operations, visit Inflation.
Source note: This article includes information reported by Business Standard.
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