GK and monthly revision

Dollar hits 13-month high as rate-hike bets, stock rout boost demand

The US dollar has surged to a 13-month high, driven by a selloff in technology stocks and rising expectations for interest rate hikes by the Federal Reserve. This trend highlights a shift towards safe-haven assets as global stock markets face turmoil. The dollar index has reached its highest level since May 2025, while the weakening of the Japanese yen has led to discussions about potential foreign exchange interventions. This situation is significant as it impacts global trade and investment strategies.