Dollar Posts Biggest 3-Month Surge on Fed Rate Hike Signals

The U.S. dollar recorded its largest single-day rally in three months after multiple Federal Reserve officials signaled growing support for interest-rate hikes in 2026. The move reflects a hawkish shift in Fed rhetoric that caught markets off guard. EUR/USD, GBP/USD, and USD/JPY are the primary pairs in focus, as a stronger dollar directly pressures euro and sterling while lifting the greenback against the yen. Traders should watch for continued volatility as rate expectations reprice across the curve.