Dollar Surges on Hike Hopes Amid Oil Price Volatility

The US dollar reached a one-month high on July 28, as traders weighed the chances of a rate hike at the Federal Reserve's upcoming meeting.

A growing number of major brokerages believe there is a real risk of the Fed delivering a rate hike this week, given the surge in oil prices and escalation in tensions in the Middle East.

The dollar index, which measures the greenback against a basket of currencies including the yen and euro, edged up 0.03% to 101.55.

CME FedWatch data shows expectations for a rate hike of at least 25 basis points from the Fed at its policy announcement are pegged at 36.3%, up from 16% a week ago.