Dollar Reaches One-Month High as Rate Hike Fears Intensify

The US dollar has reached a one-month high as traders weigh the possibility of a Federal Reserve rate hike at its upcoming meeting. The dollar index, which tracks the greenback against a basket of currencies including the yen and euro, rose to 101.55.

While oil prices have fallen due to the pause in US attacks on Iran, inflation worries are still present. Chris Weston, head of research at Pepperstone, noted that the lack of meaningful buying at the front end of the Treasury curve has kept the dollar well supported.

A growing number of major brokerages believe there is a real risk of the Fed delivering a rate hike this week, with expectations for a hike pegged at 36.3 per cent according to CME FedWatch, up from 16 per cent last week.