Dollar Surges on Crude Oil and Interest Rate Hikes

The US dollar index (DXY) has strengthened to its highest level in over two weeks, supported by rising crude oil prices and higher T-note yields.

Rising WTI crude oil prices by 1% have increased inflation expectations and may prompt the Federal Reserve to tighten monetary policy, which is positive for the dollar.

The 10-year T-note yield has reached a 19-year high of 5.04%, further boosting the dollar's interest rate differentials.

Expectations that the Fed will raise interest rates by 25 basis points at its upcoming FOMC meeting also support the dollar.