Dollar Surges Past 101 as Rate Hike Expectations Fuel Bullish Sentiment

The ICE U.S. Dollar Index (DXY) has reached an eight-week high of 101.23, as market expectations for further rate hikes from the Federal Reserve surge.

Market bets on a higher interest rate environment have driven the dollar up against a basket of currencies, with the index posting gains in eight of the past ten trading sessions.

Rising energy prices, which typically weigh on the greenback, have had little impact due to the increased sensitivity of markets to interest-rate hike expectations.

Industry data shows that the last full week of September has consistently been the strongest-performing week for the U.S. dollar over the past decade, with a median weekly return of 0.7% in the current week.