The US dollar rises to its highest since late July as markets bet on continued interest rate hikes by the Federal Reserve.

On Wednesday, as the market bet on further rate hikes by the Federal Reserve, the US dollar rose to its highest level since the end of July against a basket of currencies. The Federal Reserve raised rates by 25 basis points last week and hinted at at least one more rate hike this year. With expectations for further rate increases continuing to rise, the US dollar has gained support. During afternoon trading in Europe, renewed energy price increases also boosted the dollar, with Brent crude oil price climbing back above $100 per barrel. Due to the dollar's safe-haven status and the United States' position as a net oil exporter, rising energy prices typically benefit the dollar. However, as interest rate expectations become the dominant factor, the dollar's sensitivity to oil price fluctuations has decreased. "The medium- to long-term strong dollar trend we previously forecast may finally be starting to emerge," Standard Chartered strategist Steve Englander stated in a report.