Dollar Index Tops 100 as Fed Tightening Bets Send Euro and Sterling Lower

The US Dollar Index (DXY) rose above 100.00 for the first time in two months, fueled by expectations of further Federal Reserve tightening.

This move was accompanied by a decline in the euro and sterling against the dollar, with EUR/USD dropping to around 1.1430 and GBP/USD falling to late-July levels near 1.3320.

The rise in the DXY is attributed to solid economic fundamentals, including resilient US GDP growth of 2.5% and a stable 4.2% unemployment rate, which maintain expectations for Fed policy hawkishness.