Dollar Soars on Fed Hike Bets as Oil Prices Fall

The US dollar has reached a one-month high due to traders weighing a possible rate hike at the upcoming Federal Reserve meeting. The dollar index, which measures the greenback against a basket of currencies including the yen and euro, edged up 0.03 per cent to 101.55.

Falling oil prices have eased some concerns over inflation, but US Treasury yields retreated modestly compared with other markets. Market participants are looking at the upcoming Fed meeting as a potential catalyst for further dollar gains.

Chris Weston, head of research at Pepperstone, said 'The lack of meaningful buying at the front end of the Treasury curve has helped keep the US dollar well supported.'