Dollar Soars as Fed Rate Hike Expectations Intensify

The US dollar has reached a two-month high as expectations of a Federal Reserve rate hike continue to intensify, driven by ongoing inflationary pressures and hawkish signals from Fed officials. The U.S. Dollar Index rose 0.36% to 100.92 on Wednesday, with major non-US currencies broadly coming under pressure.

The euro fell to its lowest level against the dollar since late July, down 0.37% at $1.1405, while the pound dropped as much as 0.5% to $1.3273, hitting its lowest since early July. The energy market remains a key factor influencing the outlook for the US dollar and global monetary policy.

Brent crude oil futures rose about 1% on Wednesday, reclaiming the $100-per-barrel mark after five consecutive sessions of decline. However, it's uncertain whether the recent pullback in oil prices will turn into a sustained decline, according to ING strategist Francesco Pesole.