WASHINGTON (dpa-AFX) - The U.S. dollar firmed against most of its major counterparts on Monday as bond yields surged higher amid expectations the Federal Reserve will resort to a faster pace of policy tightening.
Fed Chair Jerome Powell said last week that the central bank is looking to speed up the tapering of bond purchases, indicating possibility of an earlier rate hike than expected.
Traders also noted the Omicron variant of the coronavirus has been reported in 38 countries and at least 15 states in the U.S.
Top U.S. infectious disease official Anthony Fauci said the Omicron variant did not appear to have a great degree of severity but added that more study will be required before drawing definitive conclusions on the strain.
Traders also looked ahead to the U.S. inflation data for November, due on Friday. It is widely expected that inflation may have risen 0.7% month-on-month and 6.7% year-on-year.
The dollar index climbed to 96.43, and despite paring some gains subsequently, is trading at 96.30, fairly well above the unchanged line.
Against the Euro, the dollar is stronger at $1.1283, up nearly 0.3% from the previous close.
Against Pound Sterling, the dollar has firmed to $1.3263, from Friday's close of $1.3236.
The dollar is trading at 113.50 yen, gaining from 112.81 yen on Friday.
Against the Aussie, the dollar weakened to 0.7051 from 0.7001.
The Swiss franc is weaker, with the dollar fetching CHF0.9255 per unit, compared to CHF0.9176 Friday evening.
The dollar is trading at C$1.2757, gaining from C$1.2846, as crude oil prices moved up sharply.
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