Amidst escalating tensions in the Middle East and the anticipation of stubbornly high U.S. interest rates, the dollar remained firm on Monday, sustaining its largest weekly gain since 2022.

Last week, the dollar strengthened by 1.6% against a basket of six major currencies following a surprising uptick in U.S. inflation. This development raised doubts about potential rate cuts by the Federal Reserve, contrasting with signals from European policymakers indicating a cut within the next few months.

https://ratecaptain.com/dollar-firm-as-tensions-rise-in-middle-east-u-s-rate-hike-expectations-intact/