Dollar Soars to One-Month High on Hike Fears
The US dollar reached a one-month high on Tuesday as traders assessed the possibility of a rate hike at the Federal Reserve's upcoming meeting, despite falling oil prices easing inflation concerns.
The dollar index, which tracks the greenback against a basket of currencies including the yen and euro, inched down 0.07% to 101.45, with the euro up 0.09% at $1.1377.
US Treasury yields retreated modestly compared to other markets overnight, but the lack of significant buying in the front end of the curve kept the dollar well supported, according to Chris Weston, head of research at Pepperstone.
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 25 basis points increase pegged at 37.9% on CME FedWatch, up from 16% a week ago.