Dollar extends gains as Fed stays in focus

The dollar index rose above 97.7 on Monday, advancing for a fourth straight session as investors awaited fresh signals from Federal Reserve officials and a key US inflation report this week.

Fed Chair Jerome Powell and about nine other policymakers are scheduled to speak this week, with markets closely tracking their guidance on the rate outlook.

Fed Governor Stephen Miran will also deliver a detailed defense of his independence after dissenting at last week’s decision, favoring a larger 50 basis point cut.

On Friday, the latest PCE price index report, the Fed’s preferred inflation measure, is expected to show relatively tame price pressures.

Last week, the central bank delivered a widely anticipated quarter-point cut, its first since December, while projecting two more reductions this year.

The dollar strengthened broadly, posting the biggest gains against the euro, yen, and New Zealand dollar.