Dollar holds ground as US inflation data looms

Singapore, Jan. 8 (BNA): The dollar was steady on Monday ahead of a key U.S. inflation report later in the week for further clarity on the Federal Reserve’s monetary policy outlook, after markets got off to a hesitant start to the year as rate cut bets were pared.

The dollar rose 0.05% to 144.67, extending its gain from last week when it jumped 2.6% on the Japanese currency, its best weekly performance since June 2022, Reuters reported. 

The greenback’s rally was underpinned by a rebound in U.S. Treasury yields as traders tempered their expectations of the pace and scale of Fed cuts this year.

Elsewhere, sterling tacked on 0.02% to $1.2721, while the euro edged 0.08% higher to $1.0948, after slipping 0.9% last week.

The Aussie gained 0.1% to $0.6721, recouping some of its losses from a 1.5% fall last week.

M.I.