The U.S. dollar index, DXY (widely followed dollar gauge), traded near a two-week high around 99.70 Tuesday as higher oil prices, rising Treasury yields and weaker risk appetite supported the greenback. Markets assign roughly a 93% probability to a quarter-point increase from the Federal Reserve (U.S. central bank) on Wednesday, which would be its first rate hike in more than three years. The 10-year Treasury yield reached 5.02%, its highest level since 2007, making dollar-denominated bonds more attractive while increasing borrowing costs globally. With the hike largely priced in, investors may focus more on Fed Chair Kevin Warsh’s guidance, particularly whether a December increase remains possible. Economists anticipate at least one further hike by the end of March 2027, although some analysts say the broader economy does not warrant substantially tighter policy.