Forex
Dollar Index Surges on Hawkish Fed Bets
The US Dollar Index (DXY) has strengthened to near 101.50 in early European trading hours on Wednesday, supported by hawkish Federal Reserve signals and rising Treasury bond yields.
Markets are pricing in nearly a 47% probability of a Fed rate hike in October, with an even higher 92.5% chance of an increase in December, according to the CME's FedWatch Tool.
The DXY has gathered strength and is poised for its largest monthly rise against it in 14 months, bolstered by expectations of US interest rate hikes.