DXY Hits Two-Week Highs as Fed Decision Looms

The US Dollar Index (DXY) has reached near two-week highs at around 99.67, ahead of the Federal Reserve's interest rate decision scheduled for 18:00 GMT today.

The widely expected 25-basis-point (bps) rate hike would lift the federal funds target range to 3.75%-4.00%, marking the first US rate increase since July 2023.

While markets have largely priced in this move, attention will focus on the updated Summary of Economic Projections and Fed Chairman Kevin Warsh's press conference at 18:30 GMT for any clues on future policy signals.

The Reserve Bank of Australia (RBA) is maintaining a hawkish stance, with an implied 78% probability that it will raise the cash rate by 25 bps to 4.60% at its September 29 meeting, according to ASX 30-Day Interbank Cash Rate Futures contract prices.