The dollar rose against a basket of currencies on Monday, aided by higher yields (yields) and traders awaiting the Federal Reserve's monetary policy meeting and U.S. employment report later in the week. The euro and pound were weaker today.

At 2041 GMT, the U.S. dollar index gained 0.28% to end at 89.319.

Six weeks after the losing streak, the dollar is likely to fall 3% this month.

On Monday, the euro fell to a low of $ 1.2335 against the dollar and then narrowed its losses after falling 0.27% to $ 1.2386 in late New York. The pound fell 0.67% against the dollar in late trade.

"There was finally a week when there was going to be a lot of things to happen, a slow start-up and consolidation was the main reason for the liquidity in the currency markets," said Kathy Lien, managing director of BK Asset Management.

Traders felt some uncertainty ahead of this week's Fed meeting, said Douglas Borthwick, managing director and head of foreign exchange at Chapdelaine Foreign Exchange.

"With the new chairman of the Federal Reserve, now with Powell in charge, the market fears it will continue to raise interest rates at the current rate as expected, or will it speed up," he said.

Reuters data show the market expects the Fed to raise interest rates three more times this year, starting in March, but some analysts, including Goldman Sachs and JPMorgan Asset Management, expect the Federal Reserve to raise rates four times.

Traders are still waiting for the January non-farm payrolls report to be released by the U.S. Department of Labor on Friday, including non-farm payrolls, average hourly earnings and jobless rate data. BK's Lien said she expects salary growth to slow.

<>The dollar is up but the euro is going to fall sharply this month
<>The dollar is up but the euro is going to fall sharply this month

 

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