Dollar index steadies at 100.2 as investors await Fed officials

  • Dollar index steadied around 100.2 on Monday after surging during the previous week.
  • Dollar index climbed more than 1% last week after the Fed raised interest rates.
  • Bank of Japan raised rates as expected, with two policymakers dissenting on the decision.

The dollar index steadied around 100.2 on Monday after surging last week, as investors awaited several appearances by Federal Reserve officials for further clues about monetary policy. Minneapolis Fed President Neel Kashkari said on Sunday that inflation remains too high and that price pressures have spread beyond the initial oil-price shock linked to the Iran war. Chicago Fed President Austan Goolsbee is scheduled to speak later Monday, followed by New York Fed President John Williams on Tuesday. The dollar index rose more than 1% last week after the Fed raised interest rates and signaled at least one additional hike this year, while Chair Warsh reiterated the central bank's commitment to bringing inflation under control. The Bank of Japan also raised rates as expected, but two policymakers dissented, weighing on the yen and suggesting that future increases may come more cautiously than previously anticipated.

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