Traders are piling in to the dollar after long weekends in both the US and the
The dollar index rate, which measures the currency against most major peers, is up over 1% today.
The currency is posting strong gains against both the Euro and the Pound this morning but the biggest rise is against the Japanese Yen. The dollar is currently up almost 1% on the Yen, at ¥122.75. That's the highest rate since 2007.
Investing.com
The dollar is surging
This has created demand for the dollar as people want to buy in before the rate rise, which would boost their returns.
Michael Hewson, analyst for CMC Markets, said: "Despite some fairly neutral comments from Fed Chief Janet Yellen late on Friday, markets continue to price in a rate rise sometime this year, with September the next probable date on the back of a slightly stronger than expected CPI inflation number at the end of last week."