Dollar firms on hawkish Fed bets, oil rebound; yen near 40-year low

The dollar index hovered near a one-year high of 101.01 on hawkish Fed bets, with Fed funds futures pricing in 75% odds of a rate hike by September. BofA Global Research and Deutsche Bank revised their forecasts and now expect the Fed to raise rates within the year. The Japanese yen weakened to around 161.59, near a 40-year low, raising speculation of possible Japanese currency intervention, while the euro traded near a three-month low at $1.1423 and oil prices rebounded after Monday's sharp fall.