U.S. Dollar Hits 13-Month High Amid Hawkish Fed Stance; ECB Raises Rates to 2.4%

The U.S. dollar has reached a 13-month high, gaining over 5% since January, driven by foreign investor confidence and the Federal Reserve's hawkish stance under new Chairman Kevin Warsh, who has pledged to "unambiguously" curb inflation. Markets are anticipating a U.S. rate hike at the Fed's September meeting. Meanwhile, the European Central Bank (ECB) increased its main policy rate to 2.4% this month, though its capacity for further hikes is constrained by a weak euro area economy. The report also notes a significant shift in central bank reserves, with gold's share now surpassing U.S. Treasurys.