Dollar Hits One-Month High as Rate Hike Chances Linger

The US dollar held at a one-month high on July 28 as traders weighed a slim but lingering chance of a rate hike at the Federal Reserve's upcoming meeting. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, eased 0.07% to 101.45.

A growing number of major brokerages believe there is a real risk of the Fed delivering a rate hike this week, given the surge in oil prices during the month and the escalation in tensions in the Middle East. Expectations for a rate hike of at least 25 basis points from the Fed at its policy announcement are pegged at 37.9%, according to CME FedWatch.

Investors will also look to US second-quarter GDP data and the Fed's preferred inflation gauge, core PCE inflation, this week for more clues on the health of the world's biggest economy. In cryptocurrencies, Bitcoin fell 2.56% to $63,255.62, while Ether declined 3.34% to $1,880.38.