Dollar trades near two-month high; Fed rate hike expectations rise.
The U.S. dollar climbed higher in early European trading Tuesday, remaining close to a two-month peak, as traders digested the potential for more Federal Reserve interest rate hikes as well as the passage of the U.S. debt ceiling deal through a divided Congress.
At 03:05 ET (07:05 GMT), the dollar index, which tracks the greenback against a basket of six other currencies, rose 0.2% to 104.323, having reached a two-month high of 104.420 earlier in the session.
