The US dollar maintained its strength near an 18-month high on Monday as investors reacted to the escalating conflict in the Middle East and anticipated key inflation data from the United States later in the week. The ongoing tensions in the region kept market participants cautious about potential economic disruptions.
Oil prices fluctuated between gains and losses following increased attacks by Yemen’s Iran-backed Houthis on Saudi Arabia, along with weekend strikes on two tankers. These developments added to the geopolitical uncertainty affecting global markets.
The dollar’s position near its highest level in a year and a half reflected expectations of potential interest rate hikes in the near term. Traders are closely watching the upcoming US inflation data, which could influence future monetary policy decisions.
Meanwhile, other financial trends included China’s record gold imports, a reported 'energy ceasefire' between Russia and Ukraine, and predictions of major scientific breakthroughs from AI within the next three years, as highlighted by TikTok’s CEO.