Hanoi:The dollar traded near its highest level in a year and a half, as escalating conflict in the Middle East led investors to exercise caution ahead of upcoming US inflation data that will influence monetary policy.
According to Oman News Agency, the announcement of an energy ceasefire between Ukraine and Russia by US President Donald Trump contributed to a 1.4 percent drop in Brent crude futures, bringing them to $103.3 per barrel during Asian trading hours. Despite the geopolitical tensions, the dollar index, which measures the currency against a basket of six others, dipped slightly to 102.16 but remained close to the 18-month high it reached last week.
Market trading was subdued with Japanese markets closed for a holiday, limiting liquidity in the region. The dollar fell 0.06 percent against the yen to 158.245 yen, while the Australian and New Zealand dollars steadied at approximately $0.69815 and $0.56080, respectively.
Attention is also turning to the US Consumer Price Index report due on Wednesday, which is the last major economic data release before the Federal Reserve's meeting in late October on interest rates. The Federal Reserve had raised rates last month for the first time since 2023 to address inflation, and markets are closely monitoring economic indicators to predict future policy moves.
The euro saw a slight increase of about 0.1 percent to $1.121, despite having recorded losses for five consecutive weeks, with investor concerns focused on France's fiscal health ahead of the 2027 presidential election. Meanwhile, the Indian rupee rose one percent to 95.8 against the dollar after the central bank's intervention to ease currency pressure. The South Korean won climbed 0.5 percent to 1,334 against the dollar, its highest level in two years, and the British pound gained 0.1 percent to $1.3245.
