Dollar Breaks Multi-Week High as Rate Hike Fuelled Rally Continues

The U.S. Dollar Index (DXY) has reached its highest level since July and is poised to extend its winning streak to eight consecutive sessions.

On Friday morning, the DXY was trading at 100.40, up 0.15% from earlier in September. The index has been on a strong run after the Federal Reserve's decision to increase its benchmark interest rate by 25 basis points.

This move improved the relative yield of dollar assets, prompting investors to rotate into the currency. With the DXY sitting at a multi-week high and all major moving averages aligned beneath price, traders are watching whether the breakout can hold.