2026.06.2413:18:57UTC+00Dollar Continues to Strengthen

The dollar index climbed above 101.7 on Wednesday, its highest level since March 2025, putting it on course for its longest winning streak in more than a month. The greenback remained supported by expectations that the Federal Reserve will keep monetary policy firmly restrictive, with traders now assigning roughly a 68% probability of a rate hike in September, up from about 29% just a week earlier. Recent turbulence in equity markets further underpinned demand for safe-haven assets. The dollar strengthened against most major peers, including the euro, the pound, and the Swiss franc, as investors priced in a more hawkish Fed stance than that of other leading central banks, underpinned by robust economic activity and inflation projected to stay well above target. Year to date, the dollar is up 3.5%.