The U.S. dollar maintained its strength on Monday, trading near a 1-1/2-year high against the euro and a seven-month high against the Australian dollar. The currency's surge followed robust U.S. jobs data released on Friday, which boosted expectations for higher interest rates. The U.S. dollar index, which tracks the dollar against six major rivals, held steady at 102.20 after a significant 0.7% jump on Friday.
New Zealand's currency rebounded from a seven-month low after weekend elections resulted in a too-close-to-call outcome, weakening the incumbent government. However, final results are not expected until late November as vote counting continues. The New Zealand kiwi climbed 0.4% to $0.5557 on Monday.
The euro edged up 0.1% to $1.11485, recovering slightly from a 0.7% slump on Friday. The Australian dollar added 0.3% to $0.6875 after a more than 1% tumble on Friday. The dollar eased 0.2% to 158.185 yen following Friday's 0.6% jump.
Futures markets indicate a 79% probability of a U.S. Federal Reserve rate hike on December 9, up from 71% a week earlier. Fed officials, including New York Fed President John Williams and St. Louis Fed President Alberto Musalem, have emphasized the need to bring inflation back to 2%. Barclays strategists noted that economic data remains strong, supporting the dollar's appeal despite concerns over AI regulation and tech stock selloffs.