The better-than-expected reading on US payrolls had investors betting the Federal Reserve will stick to its plan to raise borrowing costs twice more this year — including once next month — having lifted rates in December and March.
The likelihood of further tightening has seen the dollar rally more than four percent since hitting a recent low around 108.30 yen in mid-April.
Analysts say it could push further following the release of sales and consumer price index figures this week.
“While we think the Fed will be resolute on its course towards at least two rate hikes, the market is underpricing the risk that (the central bank) will tighten rates more quickly than expected, so a robust retail sales print and a stronger-than-expected CPI print will be a call to action for dollar bulls,” said Stephen Innes, senior trader at OANDA, in a note.
The greenback was also up against the euro — which has run out of steam since pressing higher leading up to the French election — and most other high-yielding currencies, including the Australian dollar, South Korean won, Indonesian rupiah and Mexican peso.
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