Dollar Strengthens on Hawkish Comments and Inflation Risks

The US Dollar Index (DXY) has regained its footing, climbing back above the mid-99.00s during Tuesday's European session.

This rebound comes amidst a backdrop of hawkish comments from Federal Reserve Chair Kevin Warsh and rising energy prices that are fueling inflation risks.

As a result, market bets for an interest rate hike in September have increased, contributing to the dollar's strength.

The DXY is now facing resistance at the 99.70-99.75 region, which comprises the 100-day Simple Moving Average (SMA) and the 38.2% Fibonacci retracement of the July-August fall.