In currencies, the dollar was mostly flat after being dented by weaker-than-expected inflation data last Friday. The dollar index, which measures the dollar against a basket of currencies, traded at 95.096 at 7:55 a.m. HK/SIN. The dollar index traded as low as 95.088 in the Friday session compared to a high of 95.834.
Against the yen, the greenback was steady at 112.42 after sinking last Friday. The dollar had traded around the 113 handle for most of last week.
As the main hurdle to more tightening from the Federal Reserve, inflation is expected to play a decisive role in central bank policy and influence macro market direction this year, said OANDA senior trader Stephen Innes in a Monday morning note.
“With less than a 50 percent December rate hike probability priced in and with no supportive Fed speak on the calendar before July 26, the dollar could struggle,” Innes added.
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