The US Dollar rises to an 11-day high, boosted by rate hike expectations and rising oil prices.

Boosted by heightened expectations of a Federal Reserve rate hike at this week's meeting and rising oil prices, the US dollar index climbed to an 11-day high against a basket of currencies. Following previously robust employment data, last week's strong US CPI figures further supported the dollar. According to LSEG data, this prompted money markets to price in an 87% probability that the Federal Reserve will announce a rate hike in Wednesday's decision. Meanwhile, heightened tensions in the Middle East have driven oil prices higher, with the dollar benefiting due to its safe-haven appeal and the United States' position as an oil exporter. The US Dollar Index (DXY) rose 0.3% intraday, hitting a high of 99.453. The euro against the dollar (EUR/USD) dropped to $1.1549, marking a one-month low, while the pound against the dollar (GBP/USD) fell below 1.35, down 0.2% on the day.