Dollar Reaches Two-Month High on Fed Rate Hike Prospects

The US dollar has reached its strongest level in nearly two months due to expectations of interest-rate hikes by the Federal Reserve. This surge has pushed the euro to its lowest point since late July, with a value of $1.1405. Sterling also fell to its weakest level since early July.

The recent series of interest-rate hikes and hawkish rhetoric from major central banks have dominated currency markets. Several US Federal Reserve officials have signaled that further rate rises may be necessary if inflation does not decrease quickly enough.

Oil prices remain high, with Brent crude futures rising 1% to over $100 a barrel. This increase has driven up inflation worries and has led investors to anticipate more interest-rate hikes.

Investors are also waiting for the outcome of a meeting between US President Donald Trump and Chinese President Xi Jinping, which could impact global economic stability.