US Dollar Climbs as Markets Anticipate Further Fed Rate Hikes Amid Hawkish Stance

The US dollar strengthened on Monday, reaching a new high in over a year, as investors focused on the monetary policy outlook. Following a hawkish stance from the Federal Reserve last week, both Deutsche Bank and BofA Global Research have adjusted their forecasts to include rate hikes in September, October, and December. Markets are now pricing in a 38.5% chance for a rate hike of at least 25 basis points at the Fed's July meeting, significantly up from 6.4% a week ago.