Dollar Steady as Markets Weigh Fed, BOJ Rate Hikes Amid Oil Price Surge

The US dollar held steady on Monday as markets weighed expected rate hikes from the Federal Reserve and Bank of Japan amid surging oil prices.

Global policymakers are grappling with erratic pricing pressures from the six-month-long U.S.-Israeli war on Iran that has pushed oil prices above $100 per barrel.

The European Central Bank raised rates last week, setting the stage for the Fed policy decision on Wednesday and a widely expected rate hike from the BOJ on Friday.

Traders ramped up bets for a Fed rate hike after data showed U.S. consumer prices accelerated in August; they priced in an 86% chance of an increase this week, according to the CME FedWatch tool.