Dollar index holds above 99 after strong US jobs data
The dollar index stayed above 99 on Monday after a slight prior-session rebound. Friday’s US jobs report showed nonfarm payrolls rose 162,000 in August; unemployment held at 4.1% and wages grew 3.1%.
The dollar index held above 99 on Monday after a modest rebound in the previous session, with stronger-than-expected US jobs data supporting expectations for a Federal Reserve interest rate hike in September. Friday's data showed US nonfarm payrolls rose by 162,000 in August, following a revised increase of 23,000 in July and beating forecasts for a gain of 56,000. 1%, though the easing was less pronounced than markets had expected. Investors lifted the implied probability of a September Fed rate hike to around 60%, from roughly 50% before the jobs report.
Attention now shifts to US inflation figures due this week for additional clues on the central bank's policy path. The dollar also drew support from safe-haven demand after the US and Iran exchanged strikes on vessels over the weekend, which pushed oil prices higher.