US Dollar Rallies as Warsh Revives September Rate Hike Bets

The US dollar (USD) has rallied as Federal Reserve Chair Kevin Warsh's comments on inflation have revived expectations for a September rate hike.

This led to stronger trading conditions for the USD last week, with investors responding positively to Warsh's indication that 'we still have more work to do' in bringing inflation under control.

The US dollar's gains were somewhat eroded on Monday due to surging Treasury yields, but it remains a dominant force in global markets.

The euro (EUR) struggled last week due to its inverse relationship with the USD, despite a stronger-than-anticipated improvement in Eurozone economic sentiment.