Dollar Rises to Eight-Week High on Fed Rate Hike Expectations

Odaily: As markets bet on further interest rate hikes from the Federal Reserve, the dollar rose to its highest level against a basket of currencies since late July. The Fed raised rates by 25 basis points last week and signaled at least one more hike this year, with the dollar finding support as rate hike expectations continue to build. During European afternoon trading, a renewed rise in energy prices also boosted the dollar, with Brent crude climbing back above $100 per barrel.

Due to the dollar's safe-haven properties and the United States' status as a net oil exporter, rising energy prices typically benefit the dollar. However, with rate expectations becoming the dominant factor, the dollar's sensitivity to oil price fluctuations has diminished. "The medium- to long-term dollar strength we had forecast may finally be starting to materialize," Standard Chartered strategist Steve Englander said in a report. (Jinshi)