The dollar was seen trading higher against the Japanese yen early in the Asian trade.
The U.S. Dollar Index was last quoted at 90.22. Prospects of higher inflation in the U.S., the U.K. and Germany make investors speculate that the world’s leading central banks will soon start to step back from their current policies and opt for rate hikes.
USD/JPY exchanged hands at 0.6% closing at 108.86 while the AUD/USD pair stood at 0.7816, an increase of 0.01%. The British Pound fell against the dollar by 0.09% and traded at 1.3811 as the British Prime Minister, Theresa May, gave a fresh speech on Brexit plans in the coming weeks.
After last week’s roller coaster ride in Wall Street, U.S. stock futures were showing clear signs of recovery. Dow Jones Industrial Average futures were up by 141 points, or 0.58%, in early trade in Asia. S&P 500 futures went up by 15.50 points or 0.59%. Nasdaq 100 futures were also bullish. They climbed by 0.41%, gaining 26 points.
The recovery in the stock markets helped oil regain strength after its sharp losses the previous week. Brent crude futures rose by 1% and closed at $63.42. WTI went higher by 1.1% and was traded at $59.83. Despite these rises, analysts still warn against future drop in prices due to increasing production in the United States.