Dollar Soars to Two-Month High Amid Inflation Fears, Rate Hike Expectations

The US dollar has reached its highest level in two months due to growing concerns about inflation and expectations of interest rate hikes. The strong manufacturing data released recently has contributed to these fears, which has bolstered the value of the dollar.

The euro has fallen to $1.1378, its lowest point in two months, while the sterling pound is hovering near a three-month low of $1.3231. The dollar index, which measures the US currency against a basket of peers, remains at a two-month high of 101.1.

The Japanese yen has also fallen, trading at 157.9 and nearing its three-week low. Traders are on alert for possible intervention from the Bank of Japan after last week's rate hike was deemed insufficiently hawkish by markets.