Currency traders have revised their expectations for Fed rate hikes higher, fueling a broad rally in the U.S. dollar
The U.S. dollar is on track for its strongest monthly performance in nearly a year, reflecting growing trader confidence in a resilient U.S. economy that could keep short-term interest rates elevated, ahead of important inflation figures.
The dollar index, which tracks the currency against a basket of six major peers, reached a 13-month high of 101.8 before easing slightly to around 101.6.
Growing Fed rate hike bets fuel U.S. dollar rally
This week, the U.S. dollar moved above the $1.14 mark against the euro and reached a 13-month high of $1.1325 on Wednesday before stabilizing in Asian trading around $1.1370. Against the Japanese yen, it traded at 161.73, hovering just below a more than four-decade peak as the currency continues to weaken.
Last week, the Federal Reserve…
