Per Woofun AI, the US dollar climbed to its peak since November last year on Tuesday, reflecting solidified market consensus regarding Federal Reserve interest rate hikes this year. Market participants now anticipate that the US central bank will execute nearly two rate increases of 25 basis points each by early 2027. Jordan Rochester, a strategist at Mizuho International, highlighted that the dollar typically strengthens prior to Fed rate hikes, noting active market discussions on a potential cycle commencement in September.

Meanwhile, the euro retreated to its lowest point in a year, while the yen remained under sustained pressure. This divergence underscores the growing influence of US monetary policy expectations on global currency valuations.