Dollar Surges As Traders Await U.S. Jobs Report

The dollar rose to a two-week high against the euro as traders adjusted expectations for Federal Reserve policy easing. Focus is now on the U.S. jobs report due this week. The dollar gained against the yen and euro, while the probability of a significant Fed rate cut decreased.

The dollar soared to its highest level in two weeks against the euro on Monday as traders tempered their expectations for aggressive policy easing by the Federal Reserve. Attention has now shifted to a critical U.S. jobs report expected at the end of this week.

Boosted by a rise in long-term Treasury yields, the dollar reached its strongest against the yen since August 21. The increase in yields followed stable U.S. inflation data, reducing the likelihood of a 50 basis points interest rate cut by the Fed on September 18. The dollar rose as much as 0.27% to 146.60 yen before settling at 146.29.

The dollar index, which measures the greenback against major peers, edged up to 101.79 early in the Asian trading session—a level not seen since August 20. Concurrently, the euro slipped to $1.0430, its lowest since August 19.

(With inputs from agencies.)