Dollar Strengthens as Oil Prices and Fed Hikes Keep it Supported

The US dollar gained strength on Monday as oil prices and expectations of a more hawkish Federal Reserve kept it supported.

The pound sterling, however, edged lower by 0.07% to $1.3385, while the euro also eased by 0.06% to $1.1479.

Francesco Pesole, FX strategist at ING, noted that despite some loss of ground on Friday after a reported Bank of Japan rate check, the dollar remains on solid footing.

Pesole added that the scope for further US dollar gains is still present due to expectations of one final Fed hike this year, with December more likely than October. Markets currently price 13 basis points of tightening for next month.