Dollar hits fresh 20-year peak ahead of Fed's decisions

Dollar rose in European trade against a basket of major rivals for a second session, hitting 20-year highs after Russian President Putin announced military mobilisation. 

The gains come ahead of the Federal Reserve's policy meeting later today, expected to hike rates by 75 basis points to 3.25%. 

The Index

The dollar index rose over 0.6% to 110.87, the highest since June 2002, with a session-low at 110.13, after rising 0.5% yesterday as US treasury yields spike to fresh highs. 

Russian Military Mobilisation 

Russian President Vladimir Putin announced a partial military mobilisation in the country , putting the economy in a constant war state amid the ongoing Ukrainian campaign.

Putin accused the west of waging war on Russia and asserted Russia will use every available tool to protest itself and its people against external threats.

The mobilisation means gathering upwards of 300 thousand reserve troops to serve in the military campaign in Ukraine.

The Federal Reserve

Later today, the Federal Reserve will announce its policy decisions, expected fully to hike rates by 75 basis points to 3.25%, the third such increase in a row.

And there's a 19% chance the Fed might actually raise rates by 100 basis points, heading for 4.5% by March 2023.