US Dollar Index Hits 100.37 Amid Strong Expectations for Further Rate Hikes
The US Dollar has shown strength at the start of the week due to expectations of further Federal Reserve monetary tightening. At press time, the US Dollar Index (DXY) is up 0.15% to near 100.37.
According to the CME FedWatch tool, there's almost an 88% chance that the Fed will deliver at least one more interest rate hike this year. This hawkish sentiment has been fueled by last week's policy announcement, in which the Fed raised interest rates by 25 basis points (bps) to 3.75%-4.00% and signaled at least one more hike this year.
Investors are now awaiting speeches from Federal Reserve members, with Chicago Fed Bank President Austan Goolsbee scheduled to speak later in the day in London. Minneapolis Fed Bank President Neel Kashkari recently mentioned that high inflation remains a key concern for policymakers and is not just in rising oil prices.