Baghdad: The dollar remained under pressure on Monday despite rising expectations of a US interest rate hike, as tensions in the Middle East boosted the likelihood of widening inflationary pressures, potentially prompting central banks worldwide to tighten their monetary policies.

According to National Iraqi News Agency, the dollar index, which measures the US currency against a basket of currencies, fell 0.07% to 99.09, near its recent low of 98.558. This decline comes amidst a backdrop of geopolitical tensions and economic uncertainty, challenging the dollar’s position in global markets.

The euro edged up slightly to $1.1618, while the British pound was little changed at $1.3519, signaling a cautious approach by investors as they await clearer signals from global monetary authorities. Meanwhile, the yen rose more than 0.2% to 155.88 per dollar. This gain extended following comments from Japanese Prime Minister Shinzo Abe’s economic advisor, Sanae Takeichi, who predicted that the Bank of Japan would raise interest rates this month.

In the Pacific region, the Australian dollar rose 0.12% to US$0.7208, while the New Zealand dollar held steady at US$0.5880. These movements reflect a complex mix of domestic economic conditions and the broader impact of global market dynamics, as nations brace for potential shifts in monetary policies.