The U.S. dollar extended gains to reach a 13-month high against a basket of major currencies on Wednesday, as investors prepared for rate hikes from the Federal Reserve and sought shelter from a tech stock selloff. The dollar index climbed to 101.71, its strongest since May 2025, and was last up 0.3% on the day. Markets are pricing in around a 35% chance of a rate hike at the Fed's July meeting, up from 9% a week ago, while the chance for September has risen above 70% from 29%. The euro fell 0.35% to a more than one-year low of $1.134, the British pound dropped 0.35% to a seven-month low of $1.3149, and the risk-sensitive Australian dollar also fell 0.35% to $0.6885, its lowest since early April. The Japanese yen traded at 161.66, struggling against the strong dollar, with a break above 161.96 potentially leaving it at its weakest since 1986.