Dollar Bounces Back to Year's Strongest Levels Amid Rate Hikes

The U.S. dollar has made a significant rebound in recent weeks, reaching its strongest levels of the year after months of volatile trading.

This recovery is largely driven by higher U.S. interest rates, rising Treasury yields, and persistent inflation, which have reshaped foreign-exchange markets.

The Dollar Index (DXY) moved back above 100 in September, a level it had not seen since June. The euro and British pound have weakened against the dollar, while the yen remains exceptionally volatile.