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The dollar rose somewhat on Monday as expectations increased that US inflation would support the prospects of a US interest rate hike, while the European Central Bank’s dovish stance weighed on the Euro lower.
The dollar witnessed selling at the end of last week due to weaker-than-expected data on new jobs in the US.
But analysts said better-than-expected unemployment data and inflation data expected to show the consumer price index rose 7 percent on an annual basis, due for release on Wednesday, will boost chances of a US interest rate hike soon.
The dollar index, which measures its price against a basket of currencies, rose 0.18 percent in morning trading in Europe to record 95.964.
The dollar rose 0.1 percent against the yen to 115.66 yen, close to its highest level in five years, hit last week, and reached 116.35 yen in limited trading due to a holiday in Japan.
The Euro lost 0.3 percent against the dollar, to $1.1327.
Investors believe the European Central Bank is still lagging behind the US Federal Reserve in monetary policy tightening, despite data showing that inflation in the eurozone jumped by 5 percent in December.
The pound sterling price fell slightly by 0.05 percent to 1.3591 dollars, but it was high before, supported by expectations that the Bank of England will match the US central bank in raising interest rates.
Cryptocurrencies were pressured by a broad sell-off in risk assessment at the beginning of the year but settled in Asian trading.
The price of Bitcoin reached 41,783 dollars and Ether 3,173 dollars.
