Dollar Ascends Amid Trade Talks and Inflation Fears

The dollar extended its upward trajectory for the fourth consecutive day, buoyed by rising U.S. Treasury yields. Market participants are anticipating potential Federal Reserve rate hikes as the ongoing U.S.-China summit garners international attention.

As negotiations between U.S. President Donald Trump and Chinese leader Xi Jinping continue, the yuan strengthened, reaching three-year highs. Meanwhile, the dollar made gains against major global currencies, indicating a strong performance during the summit.

Inflation concerns have accelerated the dollar's rally as U.S. inflation data showed significant increases, prompting speculation on rate hikes. The U.S. Federal Reserve, with newly appointed Chair Kevin Warsh, might turn to tightening monetary policy by the year's end.

(With inputs from agencies.)