Dollar Soars to One-Month High Amid Rising Rate Hike Odds

The US dollar reached a one-month high on Tuesday, buoyed by expectations of a modest but unlikely Fed rate hike at its upcoming meeting.

The dollar index rose 0.03% to 101.55, while the euro fell to $1.1366 and the pound slipped 0.02% to around $1.3284.

Chris Weston, head of research at Pepperstone, noted that weak demand at the start of the yield curve supports the dollar at elevated levels.

A growing number of leading brokerage firms believe there is a real risk of a rate hike this week, given rising oil prices over the month and tensions in the Middle East.