Palladium backs off two-week high, dollar scales seven-week high

Palladium prices fell about one percent in American trade away from September 28 highs, while the dollar index rose to August 20 highs, amid a lack of data from the US today. 

As of 01:59 GMT, palladium rose 0.62% to $1,070.90 an ounce, while the dollar index inched up 0.32% to 96.06 away form June 9 lows. 

The International Monetary Fund cut its forecasts for global growth for this year and the next for the first time in two years, with US and Chinese economies the most important downgrades alongside the euro zone due to rising trade protectionism. 

On Sunday, the People's Bank of China cut reserve requirements for Chinese banks for the fourth time this year amid attempts to ease policies and bolster spending. 

Upbeat US labor data released last week all but paved the way for continued policy tightening by the Federal Reserve, while US 10-year treasury yields surged to seven-year highs at 3.23, weighing on stocks. 

Now investors await crucial US inflation data this week alongside the US Treasury Department's biannual report on global economic developments and exchange policies.