The U.S. dollar retreated from an 18-month high Thursday after Treasury yields fell and investors reassessed expectations for another Federal Reserve rate increase. Reuters reported October 15 that the dollar index fell about 0.2% to around 102.0, following Wednesday’s surge after the September inflation report. The euro recovered as markets considered whether policymakers would respond immediately to higher prices. The reversal illustrates how a strong inflation reading does not determine currency prices by itself: bond yields, risk appetite and expectations for future policy also move the market. For businesses buying imports or repaying dollar-denominated debt, even short-lived swings can affect costs. These are market observations, not a prediction of the dollar’s next move.