Dollar Index Steadies Amid Interest Rate Hike Uncertainty

The US dollar index has stabilized after gaining more than 1% last week. The dollar's performance is being closely watched due to the Federal Reserve's recent interest rate hike, which suggests further increases are likely.

The Japanese yen, which had dropped 2% last week, rebounded slightly and is now trading at 156.64 against the US dollar. This comes after the Bank of Japan raised its interest rates to their highest level in 31 years on Friday, reaching 1.25%.

The euro remains relatively unchanged, hovering around $1.1482, while sterling is currently trading at $1.339 in early trading. The Australian and New Zealand dollars are also steady, with the former at $0.7129 and the latter at $0.5721.