Dollar Hits Two-Week High as Warsh Hawks Rates

The US dollar hit a two-week high on Monday after Federal Reserve Chair Kevin Warsh's hawkish remarks at Jackson Hole, fueling bets on a September rate hike.

Warsh stated that if policymakers don't get the confidence they need that inflation is heading down to 2 per cent, 'the central bank will have work to do', implying further tightening may be needed.

The comments drove up the implied probability of a rate hike in September and put pressure on several major FX pairs.