The US Dollar gained ground against major currencies during Monday's Asian trading hours, driven by increased expectations of a Federal Reserve rate hike later this week. According to FX Street, the US Dollar Index was trading around 99.30, inching closer to the 99.50 mark as investors reacted to hotter-than-expected US inflation data.
The USD/JPY pair climbed toward the 154.00 level, reflecting the dollar's strength against the Japanese Yen amid diverging monetary policy outlooks between the Federal Reserve and the Bank of Japan. Meanwhile, gold prices fell to around $4,340, pressured by the stronger dollar and rising bond yields.
For Japanese markets, the upward momentum in USD/JPY highlights ongoing volatility as traders weigh the impact of US interest rate moves on currency valuations and equity flows in the region.