Dollar Extends Gains
The dollar index strengthened to 102.4 on Monday, extending the previous week’s 0.3% gain and holding near its highest level since April 2025. The greenback was supported by escalating geopolitical tensions in the Middle East, while investors awaited key US inflation data due later this week. The Houthis continued their attacks on Saudi Arabia, while Ukrainian President Zelenskiy accused Russia of violating the energy ceasefire announced by US President Trump following a strike on a thermal power plant in Kharkiv. Against this backdrop, oil prices remained volatile. Meanwhile, both CPI and PPI data are due this week and are expected to provide further insight into inflationary pressures. Markets largely expect the Fed to keep interest rates unchanged at its October meeting, while pricing in another rate hike in December. The Fed last raised borrowing costs in September, marking its first rate hike since 2023.
3% gain and holding near its highest level since April 2025. The greenback was supported by escalating geopolitical tensions in the Middle East, while investors awaited key US inflation data due later this week. The Houthis continued their attacks on Saudi Arabia, while Ukrainian President Zelenskiy accused Russia of violating the energy ceasefire announced by US President Trump following a strike on a thermal power plant in Kharkiv. Against this backdrop, oil prices remained volatile.
Meanwhile, both CPI and PPI data are due this week and are expected to provide further insight into inflationary pressures. Markets largely expect the Fed to keep interest rates unchanged at its October meeting, while pricing in another rate hike in December. The Fed last raised borrowing costs in September, marking its first rate hike since 2023.