Forex- Dollar Continues to Gain Ground

© Reuters. The dollar inched forward on Monday.

Investing.com – The dollar slowly rose against a basket of the other major currencies on Monday as investors expect the Federal Reserve to raise interest rates this year.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.29% to 92.02 by 11:30 AM ET (16:30 GMT), up from its January 2 trough of 91.47, which was the lowest level since September 20.

Disappointing jobs data on Friday did little to deter expectations of a Fed rate hike. The U.S. economy added jobs in December, the Labor Department reported Friday, well below the 190,000 forecast by economists.

The dollar briefly slid to the day’s lows following the report before regaining ground.

Higher interest rates tend to boost the dollar by making the currency more attractive to yield-seeking investors.

Elsewhere, the euro fell from its rally against the dollar, with falling 0.44% to trade at 1.1978. Meanwhile sterling was down, with slipping 0.01% to 1.3572.

The dollar inched higher against the yen, with rising 0.03% to 113.09.

The Australian dollar dipped, with down 0.32% to 0.7839 while rallied 0.14% to 0.7180.

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