Dollar Struggles Near Seven-Month Low Amid Oil Price Hike
The US dollar index is struggling near a seven-month low on Wednesday morning in Asia, mirroring a recent surge in the yen. Treasury Secretary Scott Bessent warned traders against betting on further weakness in the Japanese currency.
Rising oil prices are intensifying inflation concerns and strengthening expectations for a Federal Reserve rate hike. The better-than-expected US Nonfarm Payrolls (NFP) report has revived bets for a September interest rate hike by the US Federal Reserve (Fed) amid inflation risks stemming from persistently higher energy prices.
Investors are awaiting key US inflation data this week, which could provide further clues on the Federal Reserve's policy outlook ahead of next week's meeting. The dollar index is currently quoting at 98.48, down marginally on the day.