Dollar jumps to near two-month high on Fed outlook, oil climb

The US dollar surged to near a two-month high on September 23 due to expectations of further interest rate hikes from the Federal Reserve and rising oil prices. Fed Governor Michael Barr mentioned the central bank's recent actions to recalibrate short-term borrowing costs in an effort to curb inflation. This potential for additional rate hikes has bolstered the dollar's momentum following its strong performance last week.

The dollar index climbed 0.54% to 101.09, its highest level since July 29, while the euro slipped 0.52% to $1.1386. Oil prices also increased as Iran's Supreme National Security Council Secretary Mohsen Rezaei stated that Iran would not reopen the Strait of Hormuz or resume negotiations unless Iran met certain conditions, causing expectations of a UN General Assembly resolution to the ongoing Middle East conflict to fade.