Dollar Steady as Yen Surges Ahead of Pivotal Rate Decisions

The US dollar remained steady on Monday as investors awaited key rate decisions from the Federal Reserve and Bank of Japan. Meanwhile, the Japanese yen continued to rise, nearing a seven-month high of 152.89 per US dollar.

The recent surge in oil prices above $100 per barrel has triggered long-end bond selloffs and put pressure on global policymakers. The European Central Bank's rate hike last week and warning of further hikes set the stage for this week's pivotal decisions.

Traders have increased bets on a Fed rate hike, with an 86% chance priced in, according to the CME FedWatch tool. Chief economist Shane Oliver noted that the Fed may need to act soon due to its October meeting being close to the US midterm elections.