Dollar climbs as Fed rate-hike bets build

The dollar index (DXY) rose to a 13-month high of 101.8, while the euro fell below 1.133 and the yen moved close to a 44-year extreme versus the dollar. Gold slid to a seven-month low below $4,000 an ounce, and Brent crude was pressured by easing geopolitical tensions and a firmer dollar. The moves were driven by a market repricing of the chance of a Federal Reserve rate hike in October and a sharp widening in U.S. Treasury yields, including a 27-basis-point rise in the 2-year yield. Inflation expectations also shifted after the Iran war.