Dollar Hits One-Month High on Lingering Fed Hike Chances

The US dollar has reached a one-month high on Tuesday as traders weigh the possibility 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, edged up 0.03% to 101.55.

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 36.3%, according to CME FedWatch, up from 16% a week ago.