What could the US Fed rate decision do to the USD index?

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The US Federal Reserve's Rate Decision Could Strengthen the US Dollar Index

The continuation of the US Federal Reserve's aggressive interest rate hikes is anticipated to bolster the US Dollar Index (DXY), potentially pushing it towards the 112.0 level. This outlook is influenced by the expectation that the US central bank will likely implement another substantial 75 basis points (bps) rate increase this week.
Anticipated Federal Reserve Rate Hike

Market observers are closely watching the US Federal Reserve's upcoming Monetary Policy Committee meeting. There is a strong likelihood that the Fed will announce a further 75 bps interest rate hike on Wednesday. This move would increase benchmark lending rates to approximately 4 per cent, signaling a continued tightening of monetary policy in the United States.
Impact on the USD Index (DXY)

The sustained super-sized interest rate hikes by the Fed, coupled with the Bank of Japan's ongoing ultra-loose monetary policy, are expected to contribute to a recovery in the USD Index (DXY). Analysts suggest that the DXY could reach around the 112.0 mark as a result of these monetary policy divergences.
Factors Supporting the Ringgit

Despite the potential strengthening of the US dollar, the Malaysian ringgit is expected to find some support. This support is attributed to the anticipated 25 bps overnight policy rate hike by Bank Negara Malaysia at its own Monetary Policy Committee meeting scheduled for November 2-3. This domestic rate adjustment is seen as a factor that could help maintain the ringgit's stability, with projections placing support around the 4.73 to 4.75 level against the US dollar.

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What could the US Fed rate decision do to the USD index?

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