Dollar Hits Two-Month High Amid Inflation Fears and Rate Hike Expectations

The US dollar has reached a two-month high after strong manufacturing data stoked inflation fears and bolstered expectations for interest rate hikes.

This has sent other currencies reeling, with the euro hitting a two-month low of $1.1378 and the sterling pound hovering near a three-month low of $1.3231.

The dollar index, which measures the US currency against a basket of peers, held steady at 101.1.

The Japanese yen also took a hit, trading at 157.9 and approaching its three-week low.