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

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