Dollar Stays Firm as Fed Chief Warns of More Rate Hikes
The US dollar stabilized near its two-week high on Monday after Federal Reserve Chair Kevin Warsh emphasized that the central bank may need to raise interest rates again to control inflation.
Warsh's comments, made on Friday, marked a shift from the Fed's more patient tone in recent months. The remarks prompted traders to reassess the trajectory of US monetary policy, with the implied probability of a rate hike at the September meeting climbing to 57 percent.
The dollar index, which tracks the US currency against six major counterparts, dipped slightly to 99.6 on Monday after jumping 0.6 percent on Friday to its strongest level since August 17.
Oil prices added support for the dollar, with Brent crude rising nearly 2 percent following a US military strike on Iran's Larak Island on Sunday.