Dollar Hits Two-Month High on Rate Hike Expectations

The US dollar has reached a two-month high against major currencies on Wednesday, driven by expectations that the Federal Reserve may continue to tighten monetary policy.

According to Reuters, the Dollar Index, which measures the greenback against six major currencies, rose 0.24% to 100.79.

The euro fell 0.25% to $1.142, its lowest level since late July, while the British pound declined 0.3% to $1.3305.

Fed officials' comments this week have pointed to the possibility of further tightening if inflation fails to slow sufficiently, according to Francesco Pesole, a strategist at ING.