Dollar Hits One-Year High as U.S. Interest Rate Hopes Rise

The U.S. dollar climbed to its strongest level in a year on Thursday. The rise came as traders bet that the Federal Reserve will keep interest rates higher for longer. Higher rates make the dollar more attractive to investors. The currency’s gains continued even as oil prices fell. The drop in oil followed a temporary peace deal between the United States and Iran, signed on Wednesday. Lower oil prices usually weaken the dollar, but the interest rate outlook outweighed that effect.