The dollar maintained its strong gains near its highest level in two months during Monday’s trading, supported by US jobs data that exceeded expectations and strengthened investors’ bets on raising US interest rates before the end of the year, at a time when the Japanese yen continued to decline to levels that once again raise fears of official intervention.
Trading showed the stability of the US currency after the non-farm payrolls report, which revealed the addition of 172,000 jobs last month, exceeding market expectations, which strengthened confidence in the strength of the US labor market despite the pressures resulting from rising energy prices.
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Major currencies fell against the dollar, as:
US
He added that these data make tightening US monetary policy “increasingly likely,” expecting the Federal Reserve to raise interest rates twice by 25 basis points during the second half of the year in response to rising energy costs and an acceleration in the pace of employment.
Market expectations, according to the CME Group’s Fed Watch tool, indicate a probability of more than 70% that the Federal Reserve will raise interest rates next December, compared to only about 45% a week ago.
These expectations came at a time when inflationary fears were escalating due to the rise in oil prices, after Israel announced that it would carry out strikes on military targets in western and central Iran, despite reports that US President Donald Trump asked Israeli Prime Minister Benjamin Netanyahu to avoid launching further attacks.
Tokyo had spent about 11.7 trillion yen (about 73 billion dollars) to support its currency after it fell to its lowest levels since July 2024 at 160.725 yen to the dollar.
On the other hand, sources told Reuters that the Bank of Japan is still moving towards raising interest rates this month, unless developments in the Middle East lead to severe turmoil in global financial markets.
Ether also rose by more than 1% to $1,652, after falling to its lowest level in 14 months last week.
