U.S. Dollar Appreciates As Treasury Yields Rise On Inflation Worries

The U.S. dollar climbed against its major rivals in the Asian session on Monday, following a rally in U.S. treasury yields amid inflationary concerns and on expectations of a faster tightening of monetary policy after upbeat retail sales data for September.

China's GDP growth slowed in the third quarter, indicating that power shortages and supply disruptions are hurting economic activity.

Rising energy prices added to worries about inflation and pushed up bond yields.

The yield on benchmark 10-year U.S. treasury note rose 0.03 basis points to 1.607 percent.

Unexpectedly strong U.S. retail sales data released last week intensified expectations that Fed would tighten monetary policy earlier than expected.

Fed funds futures are now fully pricing in a rate hike by September 2022.

The greenback advanced to 0.9262 against the franc, 114.45 against the yen and 1.3720 against the pound, off its prior lows of 0.9219, 114.02 and 1.3765, respectively. The greenback is likely to face resistance around 0.94 against the franc, 116.00 against the yen and 1.34 against the pound.

The greenback touched a 5-day high of 1.1574 versus the euro, up from a low of 1.1605 hit at 6 pm ET. Next key resistance for the greenback is likely seen around the 1.14 level.

The greenback rose to 4-day highs of 1.2409 against the loonie and 0.7400 against the aussie, following its previous lows of 1.2348 and 0.7437, respectively. The next possible resistance for the currency is seen around 1.27 against the loonie and 0.72 against the aussie.

The greenback rebounded to 0.7057 against the kiwi, after touching 0.7105, its lowest level since September 16. On the upside, 0.68 is possibly seen as its next resistance level.

Looking ahead, Canada housing starts for September are scheduled for release at 8:15 am ET.

U.S. NAHB housing market index for October, industrial production and monthly budget statement for September will be released in the New York session.