The US dollar continues to rise, with hawkish signals from the Federal Reserve boosting bets on interest rate hikes.

The US dollar continued its upward trend for the second consecutive day, rising back towards its late March high, as traders are betting that the Federal Reserve will begin raising interest rates as early as the end of next month. This development pushed the Bloomberg Dollar Index up about 1% before the Fed meeting on Wednesday. Fed Chairman Kevin Wash emphasized the central bank's role in combating inflation during the meeting, with many policymakers predicting a rate hike before the end of the year. US short-term bond yields surged, inspiring global investors to shift funds towards US assets. The Euro fell to its lowest level since March, the Canadian Dollar hit a seven-month low, and the Japanese Yen fell to its weakest level since July 2024. The Fed's stance once again boosted the US dollar, as the recent Iran conflict led to a surge in oil prices and the dollar received a boost as a safe-haven currency.