Dollar Soars to Near Two-Week High After Warsh Hints at Rate Hike

The US dollar reached near two-week highs on Monday following hawkish comments from Federal Reserve Chair Kevin Warsh. Markets are now more confident in a rate hike, according to Warsh's remarks. The yen slipped below its closely watched level of 160 per dollar.

Warsh stated that the central bank will 'have work to do' if policymakers don't gain confidence that inflation is heading down to 2%. This is seen as a clear indication that further tightening may be needed to curb price pressure.