The dollar index fell to 102.1 on Monday, after touching 103 early in the session, as investors concerns about the need for more monetary tightening eased after a weaker-than-expected ISM manufacturing PMI reading. Early in the session, a surprise cut in oil production by OPEC+ raised fears about further inflationary pressure and the need of more rate hikes.
Fed Bank of St. Louis President James Bullard told Bloomberg Television that OPEC+’s decision to cut output was unexpected and an increase in oil prices could make the Fed’s job of lowering inflation more challenging. Investors now look ahead to more economic releases this week such as jobs openings data on Tuesday, ADP private payrolls report on Wednesday and the monthly jobs report on Friday.