Dollar Hits One-Month High on Lingering Chance of Fed Rate Hike

The US dollar has reached a one-month high as traders weigh the possibility of a rate hike by the Federal Reserve at its upcoming meeting. The Fed's two-day policy meeting is set to end on Wednesday, and expectations for a rate hike of at least 25 basis points are pegged at 37.9%, according to CME FedWatch.

Chris Weston, head of research at Pepperstone, notes that the lack of meaningful buying in US Treasury yields has kept the dollar well-supported. Meanwhile, oil prices have eased some concerns over inflation, but US Treasury yields retreated modestly compared to other markets.

The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, eased 0.07% to 101.45. The euro is up 0.09% at $1.1377, while sterling gained 0.09% to $1.3299.

In the cryptocurrency market, Bitcoin fell 2.56% to $63,255.62, and Ether declined 3.34% to $1,880.38, its biggest percentage drop in a month.