Dollar Index Above 100
The dollar index edged up to 100.3 on Monday, reaching its highest level in almost three months and extending last week’s gain of nearly 1.1%, as the greenback continued to benefit from a more hawkish stance from the Federal Reserve. The central bank raised the federal funds rate by 25bps last week and is expected to deliver another hike by year-end. Chicago Fed President Goolsbee said he remains open to the possibility that inflation will resume its decline towards the 2% target, but warned that interest rates may need to rise if that fails to materialise. Meanwhile, Minneapolis Fed President Kashkari said yesterday that inflation remains too high across all sectors of the economy, rather than being driven solely by oil prices. Oil prices however, fell for a fourth consecutive session amid hopes that diplomatic efforts could lead to a resolution to the conflict with Iran. The greenback was broadly higher against the yen, euro and pound.
1%, as the greenback continued to benefit from a more hawkish stance from the Federal Reserve. The central bank raised the federal funds rate by 25bps last week and is expected to deliver another hike by year-end. Chicago Fed President Goolsbee said he remains open to the possibility that inflation will resume its decline towards the 2% target, but warned that interest rates may need to rise if that fails to materialise. Meanwhile, Minneapolis Fed President Kashkari said yesterday that inflation remains too high across all sectors of the economy, rather than being driven solely by oil prices.
Oil prices however, fell for a fourth consecutive session amid hopes that diplomatic efforts could lead to a resolution to the conflict with Iran. The greenback was broadly higher against the yen, euro and pound.