Dollar Hits One-Month High as Traders Bet on Rate Hike

The US dollar has reached a one-month high, driven by traders' lingering hopes of a Federal Reserve rate hike. Even as oil prices have fallen, easing some inflation concerns, markets are pricing in an increased chance of a rate increase this week.

The dollar index rose 0.03% to 101.55, with the euro down 0.01% at $1.1366 and sterling easing 0.02% to $1.3284. The Fed's two-day policy meeting ending on Wednesday is a key focus for investors.

A growing number of major brokerages believe there is a real risk of the Fed delivering a rate hike this week, with expectations for a 25 basis point increase pegged at 36.3% according to CME FedWatch, up from 16% a week ago.