Dollar Volatility Peaks Amid Rate Hike Expectations, Yen Strength

The U.S. dollar remained volatile on September 7 despite rising expectations of a Federal Reserve interest-rate hike this month.

Tensions in the Middle East heightened the risk of broader inflationary pressure, which could force central banks around the world to tighten monetary policy at the same time.

The euro rose by about 0.1% to trade at $1.1618, while the pound sterling was little changed at $1.3519.

Elias Haddad notes that even if a September rate hike becomes a done deal, 'we doubt the U.S. dollar will reach new cyclical highs' due to policy tightening by other major central banks.