USD Index Hits Four Month High

The dollar stayed close to a nearly four-month high against a basket of currencies on Monday on Fed rate hike expectations while commodity-related currencies weakened after soft weekend data on China’s economy.

The Australian and New Zealand dollars both lost about 1 percent. The dollar index was up 0.3 percent at 97.876, after rising as high as 98.334 on Friday, its strongest since April 23, after data showed U.S. nonfarm payrolls rose 215,000 last month.

That fell short of expectations for a rise of 223,000 jobs but was still viewed as consistent with a strong labour market, and the previous two months were upwardly revised.

The dollar hit a two-month high of 125.07 yen on Friday, and was last up 0.37 percent at 124.66, buoyed by elevated two-year U.S. Treasury yields. The euro was down 0.17 percent at $1.0945.

via Reuters

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza