United States Dollar Index jumps to near 100.70 as Fed maintains hawkish rhetoric

The US Dollar Index surged to a near 100.70 mark on Wednesday, buoyed by strong expectations that the Federal Reserve would continue to hike interest rates throughout the year. The DXY, which measures the Greenback's strength against six major currencies, rose 0.15% and hit a seven-week high. US Dollar proved to be the strongest against the New Zealand Dollar in today's percentage changes.

According to the CME FedWatch tool, the probability of the Fed making at least one more rate hike this year stands at nearly 90%. Fed officials' hawkish comments, citing upside inflation risks from both demand and supply shocks, have bolstered the US Dollar's appeal. BBH analysts point out that Fed officials, both current and future FOMC members, are signaling more tightening measures ahead, reinforcing the Dollar's positive outlook.