DXY Index Hits Prior Peak as Fed Hike Anticipation and Global Risks Lift US Dollar

The US dollar has strengthened on rising bond yields and geopolitical risks, pushing the DXY index towards its prior peak at 101.80.

This comes as investors anticipate a potential Federal Reserve rate hike, with overnight index swap pricing indicating a roughly 35% probability of a rise next week.

Inflation in Japan has also contributed to downward pressure on the yen, with core-core nationwide CPI rising 1.7% year-on-year in June.