The dollar index rallied to a 1.5-week high as crude oil prices surged, pressuring precious metals and the Euro while fueling expectations for further monetary tightening by the Federal Reserve.
WTI crude oil rallied to 3.75-month high, raising inflation expectations.
Gold fell to 5-week low on stronger dollar and hawkish central bank comments.
Silver fell to 5-week low alongside gold on dollar strength and rate hike fears.
Dollar index rallied to 1.5-week high on safe-haven demand and Fed rate hike expectations.
EUR/USD fell to 1-month low on stronger dollar and negative impact of oil rally on Eurozone economy.
USD/JPY rose on stronger dollar and downward revision to Japan industrial production.
The US Dollar Index climbed 0.28% on Monday, bolstered by safe-haven demand and expectations of a 25 basis point Fed rate hike. Meanwhile, surging crude oil prices pressured the Euro and Yen, while precious metals tumbled to 5-week lows amid a hawkish central bank outlook.
The dollar index rose due to increased safe-haven demand as stocks slumped and expectations for a 25 basis point interest rate hike at the upcoming FOMC meeting.
The rally in crude oil prices acted as a negative factor for the Eurozone and Japanese economies, both of which are heavily dependent on energy imports, contributing to the decline of the EUR/USD and pressure on the Yen.