Dollar Climbs on Lingering Hike Chances Despite Easing Inflation Fears

The US dollar rose to a one-month high on Tuesday as investors weighed the possibility of a Federal Reserve rate hike at its upcoming meeting.

Despite falling oil prices easing concerns over inflation, the greenback edged up 0.03% to 101.55 in the dollar index, which measures the currency against a basket of currencies including the yen and euro.

The euro declined 0.01% to $1.1366, while sterling fell 0.02% to $1.3284.

Chris Weston, head of research at Pepperstone, noted that 'the lack of meaningful buying at the front end of the Treasury curve has helped keep the US dollar well supported.'