The dollar hovered at a four-year peak against a basket of major currencies early on Tuesday, on track to post its biggest monthly gain in well over a year even as some analysts warned its three-month long rally was at risk of running out of puff.
Trading in Asia is likely to be subdued with investors keeping a wary eye on the spreading pro-democracy protests in Hong Kong and with a raft of holidays in the region this week.
The dollar index last stood at 85.605, not far from an overnight peak of 85.798 – a high not seen since July 2010. It’s monthly gain of 3.5 percent, if sustained, would be the largest since February 2013. In the past three months, the dollar index has surged more than 7 percent, driven in part by expectations the Federal Reserve will start to hike interest rates well ahead of most other major central banks.
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