# Dollar drops slightly from 19-month highs, rate divergence in focus

> The dollar edged lower on Thursday after reaching its highest level in about 19 months earlier in the session, following strong inflation data that drove a hawkish repricing of the Fed's rate path. Fed officials raised the possibility of a 50-basis-point hike, and Goldman Sachs now expects another hike early next year on top of one in December. The euro traded near its lowest level since May 2025.

- Date: 2026-11-12 · published 2026-11-12T15:13:04.095Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/95723-dollar-drops-slightly-from-19-month-highs-rate-divergence-in-focus
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

Expectations of further Fed hikes keep the dollar elevated, which raises the cost of dollar-priced feed commodities for importers and can weigh on US export prices. Persistent rate divergence with the euro zone adds to pressure on euro-based buyers.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2023-12-01 | [Dollar rises from 3-1/2-month low; rate cut bets intact](https://feedsoft.ai/events/33360-dollar-rises-from-3-1-2-month-low-rate-cut-bets-intact.md) | +0.3% | -1.5% |
| DXY | 2024-04-12 | [Dollar jumps on central bank divergence, euro hits five-month low](https://feedsoft.ai/events/9970-dollar-jumps-on-central-bank-divergence-euro-hits-five-month-low.md) | +1.1% | +0.5% |
| DXY | 2026-06-24 | [U.S. dollar rises to 13-month high on Fed rate hike views](https://feedsoft.ai/events/11992-u-s-dollar-rises-to-13-month-high-on-fed-rate-hike-views.md) | -0.1% | -0.4% |
| DXY | 2016-11-16 | [Dollar near 11-month highs as upbeat US data gives rally fresh legs](https://feedsoft.ai/events/8330-dollar-near-11-month-highs-as-upbeat-us-data-gives-rally-fresh-legs.md) | +0.6% | -0.0% |
| DXY | 2021-10-25 | [Dollar rises from one-month low on prospect of higher interest rates \| Reuters](https://feedsoft.ai/events/7163-dollar-rises-from-one-month-low-on-prospect-of-higher-interest-rates-reuters.md) | +0.4% | +1.7% |
| EURUSD | 2024-04-12 | [Dollar jumps on central bank divergence, euro hits five-month low](https://feedsoft.ai/events/9970-dollar-jumps-on-central-bank-divergence-euro-hits-five-month-low.md) | -0.6% | +0.5% |
| EURUSD | 2021-10-25 | [Dollar rises from one-month low on prospect of higher interest rates \| Reuters](https://feedsoft.ai/events/7163-dollar-rises-from-one-month-low-on-prospect-of-higher-interest-rates-reuters.md) | -0.7% | -3.2% |
| EURUSD | 2023-09-28 | [Dollar index powers to 10-month high - Business & Finance - Business Recorder](https://feedsoft.ai/events/34310-dollar-index-powers-to-10-month-high-business-and-finance-business-recorder.md) | +0.1% | +0.2% |

## Sources

- live.euronext.com: https://live.euronext.com/en/financial-news/dollar-drops-slightly-19-month-highs-rate-divergence-focus
- kitco.com: https://www.kitco.com/news/off-the-wire/2026-11-12/dollar-drops-slightly-19-month-highs-rate-divergence-focus

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.