The dollar index firmed up above 95.5 on Monday and held onto the previous week’s gains, as traders awaited fresh policy direction signals from the Federal Reserve meeting this week. The Fed is set to conclude its two-day meeting on Wednesday, and although it is not expected to move rates, there has been rising expectations for the central bank to bring forward its tightening plans to tame persistently high inflation.

Goldman Sachs said Sunday that its baseline forecast calls for four rate hikes this year, but the bank sees a risk for more rate increases due to the surge in inflation. The dollar was also supported by increased safe-haven demand amid a global equity selloff and heightened geopolitical tensions. Meanwhile, the latest weekly jobless claims in the US unexpectedly jumped by the most since October, with some renewed virus-related disruptions at least temporarily impeding the labor market’s recovery.