Dollar Climbs to One-Month High while Investors Weigh on Fed Rate Hike

The U.S. dollar increased to a one-month high against a basket of currencies while investors carry on by assessing the next increase in interest rates. The WSJ Dollar Index increased by 0.6 percent to 87.06 bound to its highest closing level since July 28.

The dollar increased by 1.1 percent against the Japanese yen to ¥103.05. The euro slipped by 0.4 percent to $1.1143. According to CME Group data, investors currently see a 27 percent likelihood of a Federal Reserve rate increase in September as well as a 55 percent likelihood in December. A gauge of U.S. consumer confidence during August increased to its highest level in almost a year as a different report has shown that consumer spending was also up for the fourth consecutive month in July.

The dollar was higher against emerging market-currencies. The dollar climbed against the Mexican peso by 0.8 percent and also increased against the South African rand by 0.6 percent.

News are provided by InstaForex