Dollar Index Climbs on Fed Hike Bets, Stalls at Usual Ceiling

The US Dollar Index (DXY) has been climbing due to expectations of a Federal Reserve interest rate hike, but it stalled at its usual ceiling near 99.50.

On Wednesday, futures put roughly 90% on a quarter-point increase that would lift the Fed's rate from 3.50-3.75% to 3.75-4.00%, and this has contributed to the DXY's rise.

The Euro is 57.6% of the index, and its recent decline has also helped push up the Dollar Index.

However, analysts note that a 5% Treasury yield is not as positive for the US Dollar as it seems, as investors are demanding more to hold American bonds due to higher government borrowing and inflation.