Dollar Index Touches Seven-Week High as Fed Keeps Hawkish Tone

The US Dollar Index surged to near 100.70 on Wednesday, its highest level in over seven weeks, as the Federal Reserve maintained a hawkish stance on interest rates.

Expectations of further rate hikes this year have strengthened the Greenback, with the odds of at least one more increase now almost 90%, according to the CME FedWatch tool.

Fed officials, including St. Louis President Alberto Musalem and Chicago President Austan Goolsbee, have emphasized the need for additional tightening to curb inflation, bolstering the Dollar's value.