The dollar rose to a one-year high against a basket of currencies on Friday, boosted by expectations the Federal Reserve could raise interest rates in coming months. The DXY dollar index reached 101.127, its highest level since May 2025, while the euro fell to a three-month low of $1.1416. Markets now imply a 90% chance of a 25 basis-point rate rise in September, with a move fully priced by October, after the Fed held its benchmark rate in a range of 3.5% to 3.75% but officials' projections showed nine of 19 penciled in at least one rate rise by year-end. The dollar's gains came even as oil prices eased following an interim peace deal between the U.S. and Iran, and on a U.S. public holiday that reduced trading activity. Analysts at ING cautioned the rally may not last, arguing the U.S.-Iran deal removes a positive argument for the dollar and markets are overestimating the chances of a Fed rate rise.