The dollar index was subdued around 104.4 on Monday as investors cautiously awaited Federal Reserve Chair Jerome Powell’s congressional testimony on Tuesday and Wednesday for further guidance on the central bank’s tightening plans. Investors also looked ahead to the February jobs report on Friday that could influence how aggressive the Fed will need to be in the upcoming meetings.
Markets are expecting the central bank to raise interest rates by another 25 basis points at its March meeting in light of stronger-than-expected US economic data, though analysts remain divided on what the likely peak for rates could be. In the latest Fed commentary, San Francisco Fed President Mary Daly said US rates need to stay higher for longer amid concerns about recent hotter-than-expected inflation data and worries about global economic trends that could fuel price pressures.
