Fed set to hike rates: Dollar climbs to two-week high

The U.S. dollar rose to a two-week high on Monday. Traders are preparing for the Federal Reserve to raise interest rates on Wednesday. The Fed is expected to increase rates by 0.75 percentage points. This would be the fourth straight hike of that size. The goal is to fight inflation, which remains near 40-year highs. A rate hike makes the dollar more attractive to hold. Higher rates offer better returns, so investors buy the currency. Markets will watch the Fed's statement closely on Wednesday. Traders want signals about future hikes.