Dollar Holds Near Multi-Week Highs on Anticipation of Rate Hike Cycle

The US dollar is holding steady near multi-week highs against several major currencies as investors anticipate the first of what could be multiple interest rate hikes by the Federal Reserve.

According to currency strategist Carol Kong at the Commonwealth Bank of Australia, a 25 basis-point increase is about 90% priced in, implying that the dollar will see a modest boost if the Fed acts.

The anticipation of an interest rate hike has fueled the dollar's recent gains, with investors betting on a cyclical increase in borrowing costs.