Dollar Gains Amid U.S. Inflation Anticipation

The dollar increased on Monday as markets anticipated U.S. inflation data and Federal Reserve discussions. Meanwhile, China's disappointing stimulus lowered the yuan. Political and economic uncertainties globally influence currency trends. Analysts speculate limited Federal Reserve policy shifts and Trump's policies further affecting international trade.

The dollar recorded gains on Monday as markets awaited crucial U.S. inflation figures and a slew of Federal Reserve speakers scheduled this week. Meanwhile, the yuan struggled after China's latest stimulus measures failed to impress, with consumer price growth notably slowing according to weekend data.

Anticipation grows for reports on China's retail sales and industrial output, due Friday, to assess Beijing's stimulus effects. Disappointment around China's latest economic package led to downturns in Australian and New Zealand currencies given their export reliance on China.

Against the yen, the dollar climbed 0.5% to 153.43, influenced by potential Japanese intervention risks. Political instability in Japan and Europe added to market uncertainty, affecting currency exchange rates and strategizing around the future of international economic policy.

(With inputs from agencies.)