On June 24th, the US dollar hit its highest level since November as traders consolidated their views on the Fed's interest rate hike this year. The policy outlook of the Federal Reserve contrasts with other central banks around the world. Traders currently expect that by early 2027, the United States will conduct nearly two 25 basis point interest rate hikes. Jordan Rochester, a strategist at Mizuho International, said, "There is room for the US dollar to rise, and it tends to strengthen before the Federal Reserve raises interest rates. Currently, the market is discussing the possibility of a rate hike cycle starting in September." At the same time, the euro fell to its lowest point in a year, after European Central Bank President Lagarde's remarks prompted traders to reduce their bets on rate hikes in the region. The yen continues to be under pressure as the market believes that the pace of interest rate hikes by the Bank of Japan is not enough to curb the decline of the yen, which has made traders wary of possible foreign exchange interventions.
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