HONG KONG, Sept 28 (Reuters) – The dollar inched higher to hold near a two-month high on Monday, as the US-Iran standoff continued to push up oil prices while investors looked ahead \u200cto a data-packed week for more clues on inflation and central banks’ moves. <\/p>\n
The euro and sterling \u200cwere both 0.1% weaker against the dollar, last at $1.1379 and $1.3232, respectively, hovering near multi-month lows against the greenback. <\/p>\n
The dollar index, which measures \u200bthe US currency against a basket of peers, was a touch higher at 101.15 and on track for a 1.7% gain in September, its best month since June. <\/p>\n
Oil prices climbed more than 1% on Monday with Brent crude futures last above $106 a barrel, after US President Donald Trump rejected a peace deal with Iran to resolve \u200ctheir conflict and reopen the Strait of \u2060Hormuz. <\/p>\n
Energy supply risks and robust fundamentals in the US have heightened inflation concerns and prompted traders to price in a more hawkish Federal Reserve, while elevated long-end Treasury \u2060yields also supported the dollar. <\/p>\n
“The greenback could overshoot in the near term if energy market tensions persist and inflation risks continue to build,” said Sim Moh Siong, FX strategist at OCBC. <\/p>\n
The bank’s base case remains for a moderate \u200bUSD rally \u200binto year-end, he added. <\/p>\n
The market’s focus is set to \u200bturn to US data releases as the week \u200cunfolds, with the PCE Index on Wednesday and non-farm payrolls on Friday both expected to be consistent with further policy tightening. <\/p>\n
Currently, markets are seeing a 65% chance of a rate hike from the Fed when the central bank meets next at the end of October, according to CME Group’s FedWatch tool. <\/p>\n
Other data for the week include China PMIs on Wednesday ahead of the week-long National Day holidays and Japan and euro zone \u200cCPIs on Friday. <\/p>\n
The yen was last down 0.3% at 157.7 \u200bper dollar. It gained on Friday after Japan’s Finance Minister Satsuki \u200bKatayama and US Treasury Secretary Scott Bessent \u200bheld a call on Friday and reaffirmed that yen undervaluation is a matter of \u200cconcern and that the two nations intend to \u200bstrengthen cooperation. <\/p>\n
The Australian dollar fetched $0.7017, \u200bdown 0.07%, and the kiwi traded flat at $0.5661. <\/p>\n
The Reserve Bank of Australia is expected to raise interest rates by 25 basis points to a near 15-year high of 4.60% on Tuesday, expected \u200bto be the final rate increase in \u200cthe tightening cycle. <\/p>\n
Elsewhere, offshore yuan weakened to 6.7235 per dollar after Trump and Chinese President \u200bXi Jinping’s three-day summit did not yield any big public breakthroughs on a host of \u200bcontentious issues. <\/p>\n
(Reporting by Jiaxing Li; Editing by Edwina Gibbs) <\/p>\n","protected":false},"excerpt":{"rendered":"HONG KONG, Sept 28 (Reuters) – The dollar inched higher to hold near a two-month high on Monday,…\n","protected":false},"author":2,"featured_media":629675,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[54,42,43,40,38,41,39],"class_list":["post-629674","post","type-post","status-publish","format-standard","has-post-thumbnail","category-headlines","tag-donald-trump","tag-headlines","tag-news","tag-top-news","tag-top-stories","tag-topnews","tag-topstories"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/629674","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=629674"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/629674\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/629675"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=629674"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=629674"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=629674"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}