India, Sept. 23 -- The US dollar strengthened on Wednesday, reaching a two-month high as investors assessed the possibility of additional interest rate hikes by major central banks. Expectations of tighter monetary policy, along with easing crude oil prices and diplomatic efforts surrounding the Iran conflict, shaped trading sentiment.

The dollar index, which tracks the US currency against six major currencies, gained 0.16 per cent to 100.71. The euro fell to $1.14282, its lowest level since late July, while the British pound traded at around $1.3316.

Why Is The US Dollar Rising?

Expectations of higher interest rates have provided support to the dollar. The conflict involving the US, Israel and Iran had pushed oil prices higher and rai...