The US dollar remained near an 18-month high, with the Dollar Index rising to 102.14. The market is seeking clues about the Federal Reserve's future interest-rate policy.
The US dollar remained near an 18-month high in Asian trading, with the Dollar Index holding at 102.14, close to last week's high. Japanese trading was limited by a holiday as the dollar continued to show strength against the six major currencies.
In oil markets, Brent crude fell nearly 1% to $103.55 amid rising geopolitical tensions. At the same time, market concerns over attacks on Saudi Arabia by the Iran-backed Houthis and risks in the Middle East increased expectations that these factors could push oil prices higher. President Trump's announcement of an energy ceasefire between Ukraine and Russia also affected oil-market developments.
US inflation data will be relevant to the dollar's direction, and the Federal Reserve's interest-rate decision at its next meeting is attracting attention ahead of the US CPI release. CME FedWatch put the probability of rates remaining unchanged at the October meeting at 81%, while movements in the bond market were heightening perceptions of market risk. The euro remained under pressure, although its impact is expected to be limited depending on the intensity of news concerning Europe's fiscal and political conditions.
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