DXY Wins Sixth Straight Day as Rate Hike Expectations Soar

The US Dollar Index (DXY) continued its winning streak for the sixth consecutive day, trading at around 99.70 during Asian hours on Wednesday.

The market anticipation is that the Federal Reserve will raise the benchmark overnight interest rate by 25 basis points to a range of 3.75% to 4.00%, with an almost 92.4% probability according to the CME FedWatch tool.

Recent hotter-than-expected US inflation data has reinforced expectations of a rate hike, while energy markets are fueling concerns about sustained energy cost increases feeding directly into broader consumer inflation.