Dollar Index Soars on Hawkish Fed Outlook

The US Dollar Index (DXY) has surged to around 100.30 during Asian hours on Monday, regaining ground after two days of losses. The Greenback's strength is largely due to hawkish sentiment surrounding the Federal Reserve's policy outlook.

Last week, the Fed delivered a 25-basis-point rate hike, its first in three years, with officials seeking to curb inflation and flagging more hikes in the coming months. Fed Chair Kevin Warsh emphasized that 'inflation is too high and has been for too long.'

Markets are now pricing in nearly a 56.5% chance of another US rate hike when the Fed meets next in October, compared with nearly 42.5% a week ago, according to the CME FedWatch tool.