Dollar steady before US inflation data, yen under pressure

The dollar index held flat at 101.27 ahead of key US June CPI data due Tuesday, with markets pricing in about 30 basis points of Fed rate hikes this year. Oil prices surged over 9 percent to a one-month high after the US reimposed a naval blockade on Iran and both sides exchanged heavy missile and drone strikes, raising concerns about supply disruptions through the Strait of Hormuz. Fed Governor Waller hinted rates may need to rise if inflation remains above the 2 percent target, while the yen lingered near 40-year lows at 162.40 per dollar, keeping intervention risks alive.