WASHINGTON (dpa-AFX) - The U.S. dollar firmed against other major currencies on Monday amid rising expectations the Federal Reserve will start hiking rates from March.
Although the Labor Department's report last week showed a smaller than expected addition of jobs in December, the unemployment rate fell by more than expected, raising prospects for a rate hike in the foreseeable future.
The report said non-farm payroll employment rose by 199,000 jobs in December after climbing by an upwardly revised 249,000 jobs in November.
Economists had expected employment to jump by 400,000 jobs compared to the addition of 210,000 jobs originally reported for the previous month.
Despite the weaker than expected job growth, the unemployment rate slid to 3.9% in December from 4.2% in November. The unemployment rate was expected to edge down to 4.1%.
Fed Chairman Jerome Powell is set to be grilled on the Federal Reserve's sharpest shift toward monetary tightening in decades at a hearing Tuesday on his nomination for another four years at the central bank's helm.
The dollar index climbed to 96.23 before paring some gains. It is currently hovering around 95.95, up nearly 0.25% from the previous close.
Against the Euro, the dollar firmed to $1.1331, gaining about 0.3%.
The dollar is trading at $1.3580 against Pound Sterling, gaining from $1.3593.
The dollar is trading at 115.21 yen, nearly 0.3% less than the previous close of 115.53 yen.
Against the Aussie, the dollar is at $0.7175, gaining marginally.
The Swiss franc is trading at 0.9272 a dollar, down nearly 1% from 0.9185.
The Loonie, at C$1.2677, is weak against the dollar. On Friday, the loonie had settled at $1.2644 a dollar.
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