New Delhi, Sept. 7 -- The US Federal Reserve's September rate decision is firmly in focus as markets reassess the path of interest rates following stronger-than-expected payrolls data, while elevated crude oil prices and escalating tensions in the Middle East have added to inflation concerns.

Investors are now turning their attention to the upcoming August inflation report, which could provide further clues on the Fed's policy outlook.

Data released on Friday showed that US nonfarm payrolls rose by 162,000 in August, following a revised increase of 23,000 in July and comfortably exceeding forecasts for a gain of 56,000. The unemployment rate held steady at 4.1%, in line with expectations.

David Kohl, Chief Economist at Julius Baer, sai...