Dollar Surges Amid Lingering Hike Expectations

The US dollar has reached a one-month high due to lingering expectations of a rate hike at the Federal Reserve's upcoming meeting. According to Reuters, the dollar index, which measures the greenback against a basket of currencies including the yen and euro, edged up 0.03% to 101.55.

Despite falling oil prices easing concerns over inflation, US Treasury yields retreated modestly compared to other markets overnight. Chris Weston, head of research at Pepperstone, attributed the dollar's strength to 'the lack of meaningful buying at the front end of the Treasury curve.'

The Federal Reserve will hold a two-day policy meeting ending on Wednesday, with expectations for a rate hike of at least 25 basis points pegged at 36.3%. This is up from 16% a week ago, according to CME FedWatch.

Investors are also looking to US second-quarter GDP data and the Fed's preferred inflation gauge, core PCE inflation, for more clues on the health of the world's biggest economy.