FX.co ★ Dollar Steadies as Markets Await Fed Remarks

The dollar index was steady around 100.2 on Monday after last week’s sharp advance, as investors awaited a series of speeches by Federal Reserve officials for fresh signals on the monetary policy outlook. On Sunday, Minneapolis Fed President Neel Kashkari said inflation remains uncomfortably high and that price pressures have broadened beyond the initial oil-price shock tied to the Iran war. Chicago Fed President Austan Goolsbee is set to speak later on Monday, followed by New York Fed President John Williams on Tuesday.

Last week, the dollar index rose more than 1% after the Fed raised interest rates and indicated it expects at least one more hike this year, while Chair Warsh reaffirmed the central bank’s determination to bring inflation under control. The Bank of Japan also increased rates as widely anticipated, but two policymakers dissented, signaling the BOJ may proceed more cautiously with further tightening than markets had expected, putting additional pressure on the yen.