The dollar hasn't been this strong since 2003

The US dollar index trades at its best level in over 13 years as traders continue to price in the Fed’s next rate hike. The greenback has been lifted by comments from St. Louis Fed President James Bullard, who while speaking at a UBS conference in London stated “A single policy-rate increase, possibly in December, may be sufficient to move monetary policy to a neutral setting.” Currently, fed fund futures data provided by Bloomberg shows a 94% probability the Fed will raise its benchmark interest rate 25 basis points at its upcoming December meeting.

Wednesday’s gains for the greenback are broad-based, coming against all of its major peers. Here’s a look at the scoreboard as of 8:23 a.m. ET:

  • The euro is down 0.2% at 1.0699, as it dips below 1.0700 for the first time in 11.5 months.
  • The British pound is lower by 0.3% at 1.2421 despite Britain’s unemployment rate falling to its lowest level since 2005.
  • The Japanese yen is weaker by 0.4% at 109.60 per dollar even as Japan’s 10-year yield climbed above zero for the first time since Febraury.

The greenback has been on a tear as of late, rallying about 4.5% since it bottomed out near 96.00 on election night.

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