The dollar held near a 1½-year high against the euro after strong US jobs data lifted futures-implied odds of a December Fed rate hike to 81% from 71% a week earlier. The Australian dollar rose 0.4% and the New Zealand dollar gained 0.8% as a rebound in AI-related stocks supported risk sentiment.
The Australian dollar rose 0.4% to $0.68875, recovering from a more than seven-month low, while the New Zealand dollar jumped 0.8% to $0.5589 after reaching a low late last week. A rebound in AI-related stocks lifted market sentiment, with Japan’s Nikkei gaining 2.8%, Taiwan’s Taiex rising 5.3% and South Korea’s KOSPI adding 0.4%.
The dollar index eased 0.1% to 102.11 after rising about 0.7% on Friday, when stronger-than-expected US jobs data showed October employment growth accelerated and unemployment fell. Futures implied an 81% chance of a Fed rate increase on December 9, up from 71% a week earlier.
Several Fed officials supported the case for higher rates, citing resilient economic growth and inflation concerns. New York Fed President John Williams said inflation was too high and needed to return to 2%, while San Francisco Fed President Mary Daly said the Fed would likely need to raise rates further despite the tech stock selloff.
