The US dollar hit its highest level since November last year on Tuesday, and traders expect the US to raise interest rates by nearly two 25 basis points by early 2027. Jordan Rochester, a strategist at Mizuho International, stated that there is room for the US dollar to rise, and the market is currently discussing the possibility of a rate hike cycle starting in September. The euro fell to its lowest point in a year, and 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, and 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. Traders remain vigilant about possible foreign exchange interventions.
