Dollar Strengthens Amid Inflation Data Anticipation and Fed Speculations

The dollar stayed near a three-week high against major currencies as traders awaited crucial U.S. inflation data, potentially illuminating the future of monetary policy. Elevated Treasury yields added to the dollar's strength amid concerns over potential Federal Reserve leadership changes in response to President Trump's criticism of Chair Jerome Powell.

The global currency market remained relatively calm despite China's economy growing 5.2% last quarter, slightly above forecasts. Meanwhile, Bitcoin's value receded from its recent peak as investors eyed potential legislative victories for the cryptocurrency sector.

With economists predicting a rise in headline inflation to 2.7% and core inflation to 3.0%, questions loom over the Federal Reserve's decision to maintain rates. Analysts suggest potential rate cuts this year, as discussed in response to presidential pressure and economic data.

(With inputs from agencies.)