Dollar Index Surges to One-Year High on Fed Rate Hike Prospects

The Dollar Index extended its advance for a second consecutive session, hitting its highest level in over a year. The rally was fueled by the Fed's hawkish hold on Wednesday, where policymakers signaled a potential rate hike by end-2026. The bullish momentum has overridden dollar-negative headwinds from easing geopolitical tensions following a US-Iran agreement. Traders should watch for continued upside momentum in DXY as the hawkish Fed narrative remains the dominant driver. The near-term bias is firmly bullish for the dollar. Key resistance levels from the 2024 highs come into focus, while any pullback toward prior support could offer fresh long entries on USD pairs.