The dollar index rose half a percent to around 107.4 on Monday, marching towards a fresh 20-year high, as persistent concerns about global economic growth and an increasingly restrictive US monetary policy continued to lift the safe-haven currency. Analysts cited elevated global inflation, Europe’s energy crisis and Covid-related uncertainties in China as some of the factors that are driving dollar inflows. Moreover, data released Friday showed still robust US hiring in June, bolstering the Federal Reserve’s aggressive stance against inflation. Atlanta Fed Bank President Raphael Bostic, until recently among the central bank’s most dovish policymakers, said Friday he “fully” supports another 75 basis point rate hike this month. Investors are also bracing for US inflation data on Wednesday, as another strong reading would likely cement expectations for prolonged aggressive Fed tightening.
