Dollar Holds Near Two-Week High as September Rate Hike Bets Rise

The US dollar held steady near its two-week high on Monday as investors ramped up bets on a September rate hike after Federal Reserve Chairman Kevin Warsh's hawkish remarks.

Warsh said policymakers will 'have work to do' if they don't get the confidence that inflation is heading down to 2%, indicating further tightening may be needed to curb price pressure.

Markets raised the implied probability of a rate hike in September to 57% and yields on two-year US Treasury notes rose to 4.33%, a more than one-month high.

The dollar index ticked down slightly to 99.6, but was still on track for a second consecutive monthly decline due to US Treasury bond-buyback plans.