Dollar Hits One-Month High as Rate Hike Chances Grow

The US dollar has reached a one-month high due to lingering expectations of a rate hike from the Federal Reserve at its upcoming meeting.

Despite falling oil prices easing concerns over inflation, traders are weighing the slim but growing chance of a rate hike, which has increased to 37.9% according to CME FedWatch, up from 16% last week.

The dollar index has eased by 0.07% to 101.45, with the euro up 0.09% at $1.1377 and sterling gaining 0.09% to $1.3299 against the greenback.

Investors are looking to US second-quarter GDP data and the Fed's preferred inflation gauge, core PCE inflation, for more clues on the health of the world's largest economy.