Dollar index hovers around 98 mark; FOMC members' speech eyed for cues

The dollar index is seen hovering around 98 mark on Tuesday morning in Asia amid hawkish remarks from the Kansas City Fed President Jeffrey Schmid that the Federal Reserve (Fed) must maintain its inflation credibility and stressed that inflation is too high. Besides, the greenback also drew support from yen weakness that eased to its lowest levels in almost two months Sanae Takaichi won the ruling Liberal Democratic Party leadership race, paving the way for her to become Japans next prime minister, leading to expectations for more expansionary economic policies. Also, softening euro amid geo-political tensions is also keeping the dollar firm. The Euro (EUR) softened to $1.1736 after France's new Prime Minister Sebastien Lecornu and his government resigned on Monday, hours after announcing his cabinet line-up. Meanwhile, DXY that measures the greenback against a basket of currencies is hovering at 97.97, up 0.16% on the day and holding over one week high. Investors now look to speeches from influential FOMC members this week, including Fed Chair Jerome Powell.

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