Dollar Surges on Lingering Hike Hopes, Euro Weakens

The U.S. dollar has reached a one-month high as traders weigh the possibility of a rate hike at the Federal Reserve's upcoming meeting, despite falling oil prices easing inflation concerns.

The dollar index, which measures the greenback against a basket of currencies including the yen and euro, rose 0.03% to 101.55, with the euro down 0.01% at $1.1366 and sterling eased 0.02% to $1.3284.

Chris Weston, head of research at Pepperstone, noted that 'the lack of meaningful buying at the front end of the Treasury curve has helped keep the U.S. dollar well supported.'

A growing number of major brokerages believe there is a real risk of the Fed delivering a rate hike this week, with expectations for a 25 basis points increase pegged at 36.3%, up from 16% a week ago.