Dollar Climbs on Collins' Hawkish Comments, Oil Prices Weigh

The US dollar index (DXY) rose to a seven-week high today, gaining 0.10% in value.

This increase was largely driven by hawkish comments from Boston Fed President Susan Collins, who stated that she saw an 'increased likelihood' of inflation remaining above 2%, suggesting that she may favor additional Federal Reserve tightening.

Collins' remarks also contributed to the strengthening of the dollar as markets now price in a 51% chance of a 25 basis point Fed rate hike at the next FOMC meeting on October 27-28.