Dollar Surges to Six-Week High Amid Fed Rate Hike Bets

The US dollar has strengthened this week, posting its largest weekly gain in over three months. The Federal Reserve indicated that it will likely continue raising interest rates, which led to a rise in the dollar index. Despite gold and silver prices rebounding on Friday due to lower international crude oil prices and declining U.S. Treasury yields, the dollar remains strong.

The US Dollar Index (DXY) consolidated narrowly around 100.27 during Asian trading hours on Friday, staying near its six-week high. The core driver of this strength is rising expectations of further interest rate hikes.