The dollar index rose to 100.10, its highest level in nearly 8 weeks, as investors anticipate further interest rate hikes from the Federal Reserve. Latest comments from Fed officials have signaled that high inflation is a key concern for them and is not driven by just elevated oil prices. On Monday, Chicago Federal Reserve (Fed) Bank President Austan Goolsbee said in an event that not just energy, strong demand, tariffs, and other supply shocks may be adding to inflation too.

Investors now await speeches from other Fed officials including John Williams and Tom Barkin later today. Moreover markets will also closely monitor meeting between Chinese leader Xi Jinping and US President Trump, who are expected to discuss various issues regarding Artificial Intelligence (AI) and critical minerals.