Dollar Hits One-Month High on Lingering Rate Hike Concerns

The U.S. dollar has reached a one-month high due to lingering concerns about a potential rate hike from the Federal Reserve at its upcoming meeting.

Despite falling oil prices easing some inflation worries, traders are weighing the slim but real chance of a Fed hike.

The dollar index, which measures the greenback against a basket of currencies including the yen and euro, edged up 0.03% to 101.55, with the euro down 0.01% at $1.1366.

A growing number of major brokerages believe there's a real risk of the Fed delivering a rate hike this week, given the surge in oil prices and tensions in the Middle East.

CME FedWatch shows expectations for a rate hike of at least 25 basis points from the Fed at its policy announcement are pegged at 36.3%, up from 16% a week ago.