Dollar Surges as Fed Hike Bets Reach Record High

The US dollar strengthened against several Asian currencies on Monday as investors increased their bets on a Federal Reserve rate hike this week.

According to CME FedWatch, markets now see an 86% probability of a Federal Reserve rate hike at its September 16 meeting, following U.S. consumer prices accelerating in August.

The dollar's gains were partly driven by the jump in expectations and Treasury yields increasing. The US dollar index was around 99.35, up 0.2%, after rising 0.12% on Friday.

The yen remained near a seven-month high, with some speculators turning net long for the first time since February. Japanese investors repatriating overseas assets have also contributed to the yen's strength.