Dollar Index Hits Nine-Week High on Fed Rate Hike Prospects

The dollar maintained a firm tone on Monday, climbing to a fresh nine-week high and extending Friday's rally, which saw the index gain 0.65%. The move pushed the Dollar Index above the key psychological barrier of 100 for the first time since early this year.

Traders are pricing in an increased likelihood of further Fed tightening as inflation remains sticky and economic data continues to show resilience. The breakout above 100 is seen as a bullish signal for the greenback against major peers.

No new economic releases were cited as the primary catalyst, with the move driven by technical buying and repositioning ahead of key central bank meetings later this month.