Anna 
The dollar index and dollar index futures experienced a 0.1% increase in Asian trading on Monday, rebounding after marking their initial weekly loss in 2024.
Despite the rebound, the U.S. dollar remained in close proximity to its three-month highs. This resilience comes as numerous Federal Reserve officials emphasized the central bank’s reluctance to initiate early interest rate cuts, particularly in the context of persistent inflationary pressures.
The upcoming release of the Personal Consumption Expenditures (PCE) price index data, regarded as the Fed’s preferred inflation measure, is anticipated to offer additional insights into the inflation landscape this week. Several more Fed officials are scheduled to address the public, likely reiterating the outlook for higher interest rates sustained over an extended period.
This scenario poses challenges for Asian markets, diminishing the appeal of high-yielding, high-risk assets. As a result, most regional currencies experienced declines on Monday, with the Australian dollar and South Korean won both registering 0.1% losses. Additionally, the Indian rupee maintained stability, while the Singapore dollar recorded a 0.1% decline.
Investors are closely monitoring Australian Consumer Price Index (CPI) data for January, scheduled for release later this week, which could contribute to shaping the market sentiment.
