Dollar edges up as markets weigh chances of Fed rate hike

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Dollar edges up as markets weigh chances of Fed rate hike
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The dollar edged up against major peers on Monday, as markets priced in around a 1-in-4 chance of the U.S. Federal Reserve raising benchmark rates this month after robust jobs data on Friday.

The dollar index - which tracks the greenback against six peers - came off the boil last week, after some Fed officials voiced a preference for a pause in rate hikes and after a breakthrough in U.S. debt ceiling talks calmed market jitters.for May, indicating the U.S. economy may still be running hot, analysts said the Fed may still have scope to pause rate rises as wage pressures eased and unemployment rose from a 53-year low.

"...the lack of other key inputs before next week's CPI [inflation data] could keep the dollar capped," currency analysts at ING said in a note.

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