Dollar Index Surges Above 99 as Fed Hike Odds Rise

The US Dollar Index (DXY) has risen above 99 as expectations of a Federal Reserve rate hike increase, following unexpectedly strong jobs data. The index traded around 99.20 in early Asian hours on Monday.

US labour data from the Bureau of Labor Statistics showed Nonfarm Payrolls rose by 162K in August, compared with an upwardly revised 21K previously, and above the 56K consensus; the Unemployment Rate was unchanged at 4.1%.

Pricing in the futures market implied a 58.3% probability of a Fed hike this month, according to CME FedWatch, with Producer Price Index and Consumer Price Index releases later this week set to shape the policy outlook.