Dollar Streak Continues as Hawkish Fed Fuels Rate Hike Expectations

The US Dollar (USD) continues to gain strength against the Indonesian Rupiah (IDR), extending its winning streak for an eighth consecutive day. The pair is trading around 17,850 during Asian hours on Monday.

The surge in the USD's value comes as the Federal Reserve (Fed) maintains a hawkish stance on monetary policy, signaling potential further rate hikes to combat inflation. Last week, the Fed delivered its first rate hike in three years, increasing rates by 25 basis points.

Markets are now pricing in nearly a 56.5% chance of another US rate hike when the Fed meets next in October, up from around 42.5% just a week ago.

Fed Chair Kevin Warsh emphasized that 'inflation is too high and has been for too long', highlighting the need for further action to curb price growth.