The dollar is rising ahead of an expected sharp interest rate hike from the US Central

The dollar climbed to near 20-year highs against other major currencies on Monday, ahead of a slew of central bank meetings, including a meeting of the US Federal Reserve that is likely to approve another big interest rate hike.

Exchanges were generally thin, with markets in London and Tokyo closed for public holidays.

However, the dollar maintained its strength on expectations that the Federal Reserve (the US central bank) will stick to aggressive interest rate hikes to contain high inflation.

The dollar index, which measures the performance of the US currency against six rival currencies, rose 0.4 percent to 110.06, heading to a 20-year high of 110.79, which it recorded on the seventh of September.

Markets expect US interest rates to rise by 75 basis points this week, with about a 20 percent chance of a 100 basis point increase.

The euro fell 0.4 percent to $ 0.9972 and the pound sterling fell 0.3 percent to $ 1.1390 ​​and remained close to its lowest level in 37 years recorded on Friday, while both the New Zealand dollar and its Australian counterpart fell by more than 0.5 percent.

Markets are divided over whether the BoE will raise rates by 50 or 75 basis points on Thursday.

The Canadian dollar fell in early European trading to its lowest level in almost two years at 1.3311 against the US dollar.

The dollar rose 0.4 percent to 143.46 yen, hovering below the strong resistance level at 145, which was boosted by hawkish Japanese policy makers’ talk of currency intervention.

The Chinese yuan remained weak at around seven against the dollar as economic concerns loomed and the possibility of further cuts in benchmark interest rates loomed on Tuesday.

The largest cryptocurrency by market capitalization, Bitcoin fell to a three-month low below $19,000, as concern over global interest rate hikes hurt risky assets.