Dollar robust post jobs report

The US dollar continued to rise on Monday June 8th, in the wake of Friday’s upbeat non-farm payrolls report. The dollar index ranges around the 96.50 level as expectations mount of a US rate hike this year.

Non-farm payrolls in the US posted their largest gain since December, while data for the previous two months was revised higher. The positive report sent the greenback higher versus a range of currencies, but most strongly versus the Japanese yen - where it hit a 13-year high.

As recent economic data points toward a healthy US recovery, the case for the Federal Reserve to raise interest rates before the year end continues to grow. Therefore, it’s likely that the dollar’s upward trend is in the midst of being resumed.

However, the International Monetary Fund urged a note of caution to the US Federal Reserve on Friday. It took unusual steps to warn the US Federal Reserve against raising interest rates before 2016, not long after downgrading its outlook for the US economy.