Dollar gains as risk appetite fades, inflation data eyed

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NEW YORK, June 6 (Reuters) – The dollar gained against a basket of major currencies on Monday as risk appetite waned from earlier levels, with U.S. stocks well off their earlier highs to increase the appeal of the safe haven ahead of a key reading on inflation later in the week.

After touching a near 20-year high of 105.01 on May 13, the dollar has eased back to around the 102 level, although Friday’s strong payrolls report helped the dollar notch its first weekly gain in three.

Ahead of the Federal Reserve’s policy announcement on June 15, in which the central bank is widely expected to raise rates by 50 basis points, investors will look to Friday’s reading on consumer prices for signs of how long the Fed may continue its rate hike path.