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Dollar reaches 1-month high on Fed outlook
The US dollar remains at its high level for the month, supported by market expectations of the Federal Reserve raising interest rates. There is a 36.3% chance of a 25 basis point increase on Wednesday and an 81% probability of a rate hike in September. Despite declines in oil prices and eased tensions with Iran, the dollar's strength is reinforced by sustained robustness in US Treasury bond yields, as markets await GDP and inflation data to further shape expectations.
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