Dollar Strengthens as US PMIs Surge and Oil Prices Rise

On Wednesday, sterling slipped more than 0.70% against the US dollar to its lowest level since July 1, trading at 1.3253 as a result of strengthening US business surveys and rising oil prices.

The US Dollar Index (DXY) gained 0.52% and surpassed the 101.00 mark for the first time since July 30.

S&P Global's flash Manufacturing PMI rose to 57, beating forecasts of 53.5, while the Services PMI increased from 56.5 to 58.7 and the Composite PMI advanced from 56 to 58.4.

Fed Governor Michael Barr stated that further rate rises may be necessary to return inflation to 2%, which led money markets to lift the implied probability of an October Fed hike to 70% from 52% a day earlier, according to Prime Terminal.