The US dollar rose on Monday to a 14-month high against a basket of major currencies during the Asian trading session.
This surge in US dollar attractiveness was after data showed better-than-expected employment reports despite the uncertainty surrounding the incoming administration.
The US dollar index grew to 109.64 as more market watchers changed their position regarding monetary policy easing in the new year.
Experts are now projecting slower than initially projected monetary policy easing by the Federal Reserve this year.
The US unemployment rate declined to 4.1% in December 2024, according to the data released by the US Labor Department on Friday.
The decline bolstered the US dollar against the euro common currency and the New Zealand dollar while the Australian dollar is now hovering near a four-year low.
Japanese yen and British pound also dipped against the greenback.
“U.S. economic resilience continues to be a major market theme,” said Nick Rees of Monex Europe, as the dollar’s strength reflects the outperformance of the U.S. economy relative to its global counterparts.
The strong performance and dollar rally have placed additional pressure on other economies where slower growth and more dovish central bank policies are contributing to currency depreciation.
Investors are now turning their attention to the upcoming Consumer Price Index (CPI) report scheduled for Wednesday.
