Boosted by bets on a US interest rate hike, the dollar hit a one-year high.

Supported by expectations of a possible rate hike by the Federal Reserve this year, the dollar rose to a one-year high against a basket of currencies. As expected, the Fed kept interest rates unchanged on Wednesday, but their latest projections indicate a potential rate hike before the end of the year. The Fed's new chairman, Kevin Warsh, also emphasized that policymakers are committed to bringing inflation back to their 2% target. Volkmar Baur of Deutsche Bank stated in a report that the recent drop in oil prices due to the temporary peace agreement between the US and Iran has reduced interest rate expectations for most currencies, but not for the Fed. He said that investments in artificial intelligence continue to drive economic growth in the United States. The DXY dollar index rose to a high of 101.127.