Dollar Surges as Oil Prices Climb and Fed Rate Hike Expectations Solidify

The dollar rose to new heights on Tuesday as oil prices surged and Treasury yields climbed, solidifying expectations that the Federal Reserve will raise interest rates this week.

U.S. 10-year Treasury yields reached their highest since 2007, increasing by 7.2 basis points to 5.03%.

The euro dipped 0.1% to $1.153, hovering near its lowest level since August 14, as the dollar's strength continued to pressure European currencies.

Market analysts predict a near-certain Fed rate hike on Wednesday, with CME's FedWatch tool pricing in over a 94% chance of an increase.