Title: Dollar Up, Euro near Three-Week High as Central Banks Continue Hawkish Tone
Feb 06, 2022 11:14PM ET
The dollar rose in Asia on Monday morning, and the euro was close to a three-week high reached during the previous week. Investors continued to absorb the European Central Bank's hawkish turn while saying further short-term gains are less likely as the U.S.
Federal Reserve's looming interest rate hike provides support for the dollar.
By 11:03 p.m. EDT, the US dollar index, which measures the greenback against a basket of other currencies, was up 0.07 percent to 95.545.
The USD/JPY pair rose 0.07% to 115.28.
The AUD/USD pair rose 0.04% to 0.7078, with Australia releasing retail sales data earlier in the day. The NZD/USD pair fell 0.05% to 0.6616.
The USD/CNY currency pair fell 0.44% to 6.3328, with Chinese data released earlier in the day showing that the Caixin Services Purchasing Managers' Index reached 51.4 points in January.
The GBP/USD pair fell 0.02% to 1.3527.
Investors are now awaiting US inflation data, including the consumer price index, which will be released on Thursday. A strong reading could raise the stakes for a Fed interest rate hike in March 2022.
The euro traded at $1.1451, not far from the high of $1.4183 reached during the previous week and near levels last reached in mid-January 2022. Meanwhile, the dollar was given a late boost at the end of a choppy week by a strong US jobs report.
The report showed that the number of non-farm payrolls in January was 467,000 and the unemployment rate was 4%. According to some investors, the safe-haven US currency could see further gains.
U.S. two-year yields were higher on Monday, nearing a two-year high of 1.32%, while benchmark 10-year yields were at 1.9049%.