Dollar Strengthens as Rate Hike Bets Surge Amid Warsh Comments
The US dollar has strengthened to near a two-week high as investors ramp up bets on a rate hike following hawkish comments from Federal Reserve Chair Kevin Warsh.
Warsh's remarks, made last Friday, indicated that further tightening may be necessary to curb inflation pressure. This has boosted expectations of a September rate hike, with implied probabilities increasing to 57%.
The dollar index, which measures the US currency against six major peers, ticked down slightly to 99.6 after jumping 0.6% on Friday to its strongest level since August 17.