Dollar touches highest level in more than a year. Why this latest rally might be overdone.

The U.S. dollar is set for its highest close in more than a year as investors digest the Federal Reserve's Wednesday meeting, which reopened the possibility of additional rate hikes. The move reflects a hawkish policy shift that supports the dollar and may pressure rate-sensitive assets. Market reaction is broad enough to matter across FX, rates, and risk assets.

Analysis

The U.S. dollar is set for its highest close in more than a year as investors digest the Federal Reserve's Wednesday meeting, which reopened the possibility of additional rate hikes. The move reflects a hawkish policy shift that supports the dollar and may pressure rate-sensitive assets. Market reaction is broad enough to matter across FX, rates, and risk assets.