12.10.202612:41:06UTC+00Dollar Extends Gains

The dollar index climbed to 102.4 on Monday, extending the previous week’s 0.3% advance and hovering near its highest level since April 2025. The greenback drew support from rising geopolitical tensions in the Middle East, while investors looked ahead to key US inflation releases later in the week. Houthi forces continued attacks on Saudi Arabia, and Ukrainian President Zelenskiy accused Russia of breaching the energy ceasefire announced by US President Trump after a strike on a thermal power plant in Kharkiv. Against this backdrop, oil prices remained volatile. Meanwhile, upcoming CPI and PPI reports are expected to shed further light on underlying inflation pressures. Markets broadly anticipate that the Federal Reserve will leave interest rates unchanged at its October meeting, while still pricing in an additional rate increase in December. The Fed last lifted borrowing costs in September, its first rate hike since 2023.