Dollar Struggles as Rate-Hike Bets Rise Amid Inflation and Yen Strength

Dollar Struggles as Rate-Hike Bets Rise Amid Inflation and Yen Strength

The dollar remained under pressure on Monday despite growing expectations for a U.S. interest rate hike, as escalating tensions in the Middle East increased concerns over broader inflationary pressures that could prompt central banks around the world to tighten monetary policy together.

US Treasury yields rise as dollar weakens in European trade amid oil surge and rate hike bets

Rising yields and oil prices amid geopolitical tensions could strain economic growth, impacting borrowing costs and inflation expectations globally.

Dollar Under Pressure Despite Rate Hike Bets

The dollar remained under pressure on Monday despite rising expectations of a US interest rate hike, as tensions in the Middle East fueled concerns over mounting inflationary pressures that could prompt central banks around the world to tighten monetary policy.