US Dollar is approaching a 5-week high

The dollar rose near a five-week high against the other major currencies on Monday, as investors increased their bets that the Federal Reserve will continue to tighten monetary policy for a longer period while they await the US consumer price report due on Tuesday.

The yen fell amid expectations that the Japanese government will appoint an official who supports current monetary policy as a new central bank governor on Tuesday.

The Australian and New Zealand dollars fell as Asian stocks fell on fears that higher US interest rates would slow growth. So did the pound sterling.

The dollar index – which measures the performance of the US currency against a range of major currencies including the yen, the euro and the pound – rose 0.068 percent to 103.65, remaining close to last Tuesday’s high of 103.96, its highest since January 6.

The US currency rose 0.6 percent to 132.20 yen.

The euro lost 0.09 percent, recording $1.06685, after earlier touching the 1.0656 level for the first time since January 9th. The pound was last traded at $1.20475, down 0.1 percent on Monday.

The Australian dollar fell 0.09% to $0.6912, and the New Zealand dollar fell 0.11% to $0.6304.