Dollar heads for strong monthly gain ahead of U.S. inflation data

SINGAPORE/LONDON: The dollar is on track for its biggest monthly gain in nearly a year, as markets await U.S. inflation data that could influence expectations for Federal Reserve policy.
The dollar reached a 13-month high against the euro on Wednesday, pushing the currency below $1.14. It also sent the pound to a seven-month low and kept the Japanese yen near a 40-year low at around 161.79.
Dollar strength has weighed on other assets, with gold briefly falling below $4,000 an ounce for the first time in more than seven months and bitcoin dropping under $60,000 for the first time since 2024.
The dollar index, which measures the U.S. currency against a basket of six others, stood near 101.5 on Thursday after reaching a 13-month high of 101.8 in the previous session.
Market pricing indicates expectations of a potential U.S. rate increase later this year, with attention focused on upcoming inflation data and Federal Reserve policy signals.
U.S. 2-year Treasury yields have risen by nearly 14 basis points this month to 4.15%, compared with smaller changes in German and UK government bond yields. ـــReuters