US Dollar Holds Gains as Markets Weigh Fed Rate Hike

The US Dollar Index (DXY) rose modestly to around 100.30 on Friday as markets continued to assess the latest Federal Reserve (Fed) rate hike and policy cues.

On Wednesday, the Fed raised its benchmark interest rate by a quarter-percentage point to a range of 3.75% to 4.00%, marking the first time it has done so since July 2023.

Fed Governor Michelle Bowman's speech is scheduled for later on Friday, and markets are now pricing in nearly a 53.1% chance of another US rate hike when the Fed meets next in October, compared to nearly 44% a day ago, according to the CME FedWatch tool.