The dollar index gained 0.2% to trade above 96.2 on Monday, as traders balanced concerns over the Omicron variant with expectations of higher US interest rates. Atlanta Federal Reserve president Raphael Bostic was the latest among a growing number of Fed officials stating openness to accelerating the pace of stimulus tapering after he expressed hopes that the momentum of the US economy will carry it through the next wave of the pandemic. He also acknowledged the possibility of at least two rate hikes next year if inflation remains elevated. Markets meanwhile monitor closely any developments on the new variant as Japan suspended all new entries by foreign nationals on Monday.
