Asia FX, dollar steady ahead of U.S. CPI; oil rises on Hormuz tensions

Most Asian currencies traded little changed against the U.S. dollar on Monday, as investors paused ahead of key U.S. inflation data due later in the week.

The dollar index, which measures the greenback against a basket of major peers, held steady near recent levels, reflecting cautious positioning before the release of the U.S. Consumer Price Index (CPI) for July. The CPI report, due on Friday, is expected to provide fresh insight into the Federal Reserve’s policy trajectory.

Oil prices rose on Monday, with Brent crude futures climbing above $82 a barrel, as geopolitical risks in the Middle East intensified. Tensions in the Strait of Hormuz, a critical shipping route, have heightened concerns over potential supply disruptions. The risk premium in crude markets has increased as traders monitor developments in the region.

The Japanese yen was little changed at 153.50 per dollar, while the South Korean won held flat at 1,340.00. The offshore Chinese yuan edged up 0.1% to 7.1850, remaining within its recent tight range against the dollar.

Analysts noted that currency markets were consolidating gains from last week, when the dollar strengthened broadly following stronger-than-expected U.S. jobs data. The focus now shifts to the CPI print, which could influence expectations for Federal Reserve interest-rate decisions in the coming months.

In commodities, Brent crude futures for September delivery rose 1.2% to $82.30 a barrel, while U.S. West Texas Intermediate (WTI) crude was up 1.1% at $78.90. The gains in oil prices came despite a stronger dollar, which typically weighs on dollar-denominated commodities.

Gold prices were marginally lower, reflecting the mixed signals from the dollar and oil markets. Spot gold was down 0.2% at $2,410.50 an ounce, as investors balanced safe-haven demand against expectations of a hawkish Fed stance.

Traders will also be watching for any further developments in the Middle East, where regional tensions could continue to support oil prices in the near term.