The dollar was unstable on Monday as Middle East tensions fueled fears of broader inflationary pressures that could compel central banks worldwide to tighten policy in unison.
Bitcoin steadied above $80,000 Monday, after recently drawing support as investors diversified away from the dollar into other assets.
The Nasdaq was down 0.3%. The S&P 500 was down 0.4%. And the Dow dropped 0.5%.
The slump comes as traders now price in about a 57% chance that the Federal Reserve will raise interest rates this month, following Friday’s jobs report.
The yen rose more than 0.2% to 155.88 per dollar on Monday, continuing its climb after Japanese Prime Minister Sanae Takaichi’s economic adviser predicted a possible BOJ rate hike this month.
The euro was up slightly to $1.1618, while sterling was little changed at $1.3519. Against a basket of currencies, the dollar fell 0.07% to 99.09, near its recent low of 98.558.
The Australian dollar advanced 0.12% to $0.7208.
Currency movements were mostly subdued during Asian trading hours, as U.S. markets were closed for Labor Day.
By CEO NA Editorial Staff
