2024.03.1121:09:00UTC+00Dollar Edges Higher, Gains Against Some Major Counterparts

The U.S. dollar climbed higher on Monday, recovering from recent losses, as investors looked ahead to a slew of crucial economic data, including reports on consumer and producer price inflation, for clues about the central bank's interest rate moves.

After the Labor Department's jobs data offered conflicting signals on the U.S. economic and rate outlook, investors now await the release of key inflation data this week.

The Federal Reserve's two-day meeting is scheduled to take place next Tuesday and Wednesday (March 19 and 20).

The data on consumer price inflation in the month of February is due on Tuesday. Economists expect consumer prices to climb by 0.4% in February after rising by 0.3% in January.

Core consumer prices, which exclude food and energy prices, are expected to rise by 0.3% in February following a 0.4% increase in January.

The annual rate of consumer price growth is expected to come in unchanged from the previous month at 3.1%, while annual core consumer price growth is expected to slow to 3.7% from 3.9%.

While the Fed is widely expected to leave rates unchanged at its monetary policy meeting next week, the data could impact expectations regarding when the central bank will eventually lower rates.

Data on producer price inflation, retail sales, industrial production and consumer sentiment are also due this week.

The dollar index, which advanced to 102.93, eased slightly to 102.85, but remained fairly above the flat line, gaining about 0.13%.

Against the Euro, the dollar firmed to 1.0927 from 1.0941, and against Pound Sterling, it strengthened to 1.2812 from 1.2859.

The dollar eased a bit against the Japanese currency to 146.97 yen from Friday's close of 147.07 yen. The Aussie dropped against the U.S. dollar, with the AUD/USD trading at 0.6613.

The dollar was little changed against Swiss franc at CHF 0.8777, and eased slightly against the Loonie at C$ 1.3484.