New Delhi, Sept. 24 -- The US dollar climbed to its highest level in nearly two months on Wednesday as expectations of another Federal Reserve rate hike in the near term strengthened. Rising oil prices also supported the greenback after Iran raised doubts over progress in peace negotiations.

The dollar index, which tracks the US currency against a basket of major currencies and is on upward trajectory from past four sessions, advanced 0.51% to 101.06 after touching 101.23 earlier in the session, its highest level since July 29.

The move came after the Federal Reserve raised its benchmark interest rate by 25 basis points last week to a range of 3.75%-4.00%. Since then, several Fed officials have indicated that further rate hikes could be...