Forex
Dollar Index Surges Amid Aggressive Fed Rate Hike Bets
The US Dollar Index (DXY) has been gaining ground for three consecutive days, trading around 99.30 during Asian hours on Monday.
This uptrend is largely due to aggressive Federal Reserve rate-hike bets following hotter US inflation reports.
Financial markets have priced in nearly an 87% probability of a quarter-point rate hike at the Fed's September meeting, up from 59% a week ago, according to the CME FedWatch tool.
The US Consumer Price Index (CPI) accelerated in August, with data released by the Bureau of Labor Statistics showing a 0.4% MoM increase, and a 12-month rise of 3.4%, both in line with market expectations.