Dollar Index Rises 1.1% Weekly, Highest in Three Months

The Bloomberg Dollar Spot Index rose 1.1% this week, recording the highest weekly increase in over three months. The U.S. Federal Reserve's potential for additional interest rate hikes was cited as a key factor behind the dollar's strength. The Fed raised its benchmark rate by 0.25 percentage points to a range of 3.75%-4.00% as of June 16, adjusting its target range. In its economic projections, the central bank indicated an end-of-year federal funds rate forecast of 4.1%. The Bloomberg Dollar Spot Index remains approximately 1.9% below its annual high set on June 24.