Dollar rides high on Fed rate-hike bets

The US dollar index hit a 13-month peak of 101.8 amid bets the Federal Reserve may hike rates as soon as October, with new Fed chair Kevin Warsh sounding unexpectedly hawkish. Dollar strength pushed gold below 4,000 dollars an ounce for the first time in seven months and briefly sent bitcoin under 60,000 dollars. Two-year US Treasury yields rose 27 basis points since early May to 4.15 percent, widening the rate gap over Europe and reinforcing a dollar-positive feedback loop that is likely to pressure emerging market currencies including the Indian rupee and weigh on FII flows into India.