FX.co ★ Dollar Gains Against Peers On Rate Hikes Bets

The U.S. dollar climbed higher against its major counterparts on Monday amid expectations the Federal Reserve will announce a series of steep rate hikes this year to combat inflation.

Worries about the ongoing war in Ukraine and a disappointing batch of economic data from China contributed as well to the dollar's surge.

The dollar index rose to a fresh two-year high of 100.86 with traders betting on hopes the Fed will increase interest rates by 50-basis points two or three times this year. The index is hovering around 100.80, up nearly 0.5% from the previous close.

Against the Euro, the dollar is trading at $1.0785, firming from $1.0814.

The dollar is trading at $1.3009 against Pound Sterling, strengthening from $1.3060.

Against the Japanese currency, the dollar is stronger, fetching 126.99 yen a unit, more than 0.4% up from Thursday's close of 126.45 yen.

The dollar is stronger against the Aussie at 0.7352. The Swiss franc is weak at CHF 0.9447 a dollar, more than 1.1% down from the previous close, while the Loonie is flat at C$1.2614 a dollar.