The dollar rose to an eight-week top against its major peers on Monday as traders clawed back bets for aggressive rate cuts by the Federal Reserve this year in view of a still-resilient U.S. economy.
The yen as well as the Australian and New Zealand dollars, meanwhile, tumbled to two-month lows in early Asia trade, while the euro bottomed at a more than one-month trough of $1.07675. The single currency last bought $1.0782.
Sterling similarly edged 0.18% lower to $1.2610, having earlier bottomed at $1.25985, its lowest since Jan. 17.
Against a basket of currencies, the dollar index peaked at 104.18, its highest since December. It was last steady at 104.02.
The Fed repricing has come on the back of Friday's blockbuster U.S. jobs report that far exceeded market expectations, reinforcing Chair Jerome Powell's statement at the conclusion of the central bank's policy meeting last week that a March rate cut was unlikely.
The Japanese yen was last marginally higher at 148.36 per dollar, having hit a trough of 148.82 earlier in the session.
The Aussie recouped early losses to last stand 0.05% higher at $0.65145, after sinking as low as $0.64865 earlier in the day.
Treasury yields also jumped on expectations of higher-for-longer U.S. rates, with the two-year yield , which typically reflects near-term interest rate expectations, last up nearly more than four bps at 4.4159%.
The benchmark 10-year yield rose about three bps to 4.0656%.
Source: Reuters
