Dollar Index Hits 99.6 as Markets Price in Rate Hike

The US dollar maintained its gains on Monday, trading around 99.6 on the dollar index after rising sharply in the previous session.

Hawkish comments from Federal Reserve Chair Kevin Warsh led traders to increase bets on an imminent interest rate hike.

In his Jackson Hole address on Friday, Warsh emphasized that inflation is not slowing meaningfully and reiterated the Fed's commitment to returning inflation to their 2% target.

Markets now price in a 57% chance of a 25 basis point rate hike in September, up from around 40% a week ago.