Dollar stays near 18-month high as Mideast conflict, inflation data in focus
SPY•The dollar held near an 18-month high as escalating Middle East conflict kept investors wary ahead of US inflation data due Wednesday. Markets priced an 81% chance that the Federal Reserve will leave rates unchanged this month, up from 51% a month earlier.
1. Dollar holds firm
The dollar index was slightly lower at 102.14 in early Asian trading on Monday, remaining close to the 18-month peak it reached last week. Trading was confined to a tight range, with Japanese markets closed for a holiday.
2. Inflation data in focus
Investors are watching Wednesday’s US consumer price index report ahead of the Federal Reserve’s late-October interest-rate meeting. Barclays analysts said the dollar’s rally may pause, with a pullback possible, particularly if inflation comes in soft. The euro rose nearly 0.1% to $1.121 after five consecutive weekly declines.
