Stocks rattled by inflation risk from rising oil, dicey geopolitics

The dollar retreated against the yen, dipping 0.3% to 155.76. 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 fell 0.3%, while on Wall Street, a U.S. holiday kept turnover light with S&P 500 futures off 0.1% and Nasdaq futures up 0.3%.

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.

The European Central Bank is expected to lift rates to 2.75% on Thursday. Futures imply a 75% chance of another hike to 3.0% by December.