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

The US dollar index climbed to a 13-month high of 101.44 as expectations of a Federal Reserve rate hike built amid a global sell-off in technology and semiconductor shares. Markets are now pricing in a 37% chance of a 25-basis-point hike at the July meeting, up from 8.5% a week ago, and 70% for September. Safe-haven demand was further supported by US-Iran tensions, while the Japanese yen weakened past 161 per dollar and the euro hit a one-year low near 1.1375, signaling broad risk-off pressure on emerging market currencies including the Indian rupee.