US Dollar Hits Eight-Week High as Hawkish Fed and Energy Rebound Fuel Growth
The US dollar has hit an eight-week high, reaching 101.23 on the U.S. Dollar Index (DXY), driven by hawkish interest rate expectations from the Federal Reserve and a rebound in energy prices.
Recent economic data shows that the US economy continues to maintain strong momentum, with the preliminary S&P Global Composite PMI rising to 58.4 in September, significantly higher than August's reading of 56.0.
According to Chris Williamson, chief business economist at S&P Global, 'U.S. business activity continues to expand rapidly, with the September output growth rate reaching one of its highest levels in more than five years.'
The Federal Reserve's hawkish stance has led to increased expectations for future rate hikes, providing support for the US dollar and Treasury yields.