Headline: Dollar Surges to 13-Month High as Hawkish Fed Projects More Hikes; DXY Rises

The U.S. Dollar (DXY) climbed to its highest level since mid-May 2025 on June 18, 2026, after the Federal Reserve signaled a more hawkish stance, anticipating at least one more rate hike this year. The dollar index rose 0.7% to 100.83 in late New York trading, largely overshadowing a U.S.-Iran diplomatic breakthrough. The Federal Open Market Committee (FOMC) unanimously maintained the federal funds rate at 3.50%-3.75% on June 17, 2026. However, its updated dot plot projected the 2026 year-end rate at 3.8%, up from 3.4% in March 2026, with nine members forecasting one additional hike. The Bank of England also held its rate at 3.75% on June 18, 2026, while the Japanese yen weakened past 160 against the dollar, prompting intervention warnings.