Dollar Surge: Is the Fed's Rate Adjustment Nearing Its End?

The U.S. dollar surged to a nine-week high amid economic data suggesting forthcoming moderate Fed interest rate cuts. Investors focus on Fed rate expectations, with a projected 87% chance of a rate cut at the November meeting. Smaller cut expectations have bolstered the dollar recently.

The U.S. dollar hit a nine-week high on Monday, driven by stable enough economic data to suggest moderate Federal Reserve interest rate cuts. This reinforces the bullish trend seen over recent weeks.

The dollar index reached 103.26, its highest since mid-August, as it gained against the euro. Meanwhile, the disappointing response to China's stimulus announcements pushed the dollar higher against the Chinese yuan.

Traders anticipate U.S. retail sales and jobless claims data later this week, alongside the European Central Bank's expected rate cut. Bitcoin also hit a two-week high, indicating growing confidence in digital currencies amid global economic uncertainties.

(With inputs from agencies.)