Global Markets-Stocks dented by inflation risk from rising oil, dicey geopolitics

The dollar retreated against the yen, falling 1% to 154.6, as a burst of buying propelled the Japanese currency to a seven-month high. The Japanese currency posted its strongest weekly performance in a month last week, as mounting expectations for the BOJ to hike rates, along with the ongoing threat of more official buying, triggered a short squeeze.

Meanwhile, European stocks were down around 0.1%, while on Wall Street, a U.S. holiday kept turnover light with S&P 500 futures down 0.1% and Nasdaq futures up 0.1%.

With food and fuel prices rising everywhere, central banks are more likely than not to raise interest rates, making this week's reading of U.S. consumer prices a key focus for investors.