Dollar Hits Two-Month High Amid Fed Hawks and Norway Rate Hike

The US dollar reached its highest level in two months after strong economic data and hawkish rhetoric from the Federal Reserve. The greenback strengthened against a basket of six major currencies, with the euro hitting a two-month low of $1.1373.

The Norwegian krone rose by 0.42% to 9.471 against the dollar, while the Swiss franc fell 0.26% to 0.8273. The Norges Bank raised its policy interest rate by 25 basis points to 4.5%, and signaled it may hike again.

Giada Giani, an economist at Citi, said that Norges Bank's focus remains on domestic price pressures and inflation having been stuck above target for several quarters. She argued that Norges Bank is the most hawkish in advanced economies.