Investing.com - The dollar was broadly stronger against the other major currencies on Monday, as Friday’s stronger-than-forecast U.S. jobs data boosted expectations that the Federal Reserve will soon pull back on stimulus measures.
During European morning trade, the dollar rose to almost six-week highs against the yen, with USD/JPY climbing 0.19% to 101.34.
Demand for the dollar continued to be underpinned after official data showed that the U.S. economy added 195,000 jobs in June, more than the 165,000 increase forecast by economists.
May's figure was revised up to 195,000 from a previously reported 175,000. The unemployment rate remained unchanged at 7.6% in June.
In Japan, official data on Monday showed that the current account surplus widened to JPY540.7 billion in May, the second successive monthly increase since October 2010, adding to signs that the economy is picking up.
Meanwhile, the euro was steady close to six-week lows against the dollar, with EUR/USD dipping 0.01% to 1.2831.
Sentiment on the single currency remained fragile after European Central Bank President Mario Draghi said last week that the bank expects to maintain interest rates at current or lower levels for an “extended” period of time.
The euro showed little reaction after official data earlier showed that Germany posted a smaller-than-expected trade surplus of EUR14.1 billion in May, as exports decreased by 4.8% on a year-over-year basis and imports fell by 2.6%.
Analysts had expected a trade surplus of EUR17.5 billion.
The dollar was trading near four-month highs against the pound, with GBP/USD edging down 0.06% to 1.4884.
The pound remained under pressure after falling more than 1% against the dollar on Thursday after the Bank of England indicated that interest rates are likely to remain at record low levels, given weakness in the U.K.’s economic recovery.
The dollar pushed higher against the Swiss franc, with USD/CHF easing up 0.12% to 0.9647.
The greenback was mixed against its Australian, New Zealand and Canadian counterparts, with AUD/USD edging up 0.09% to 0.9066, NZD/USD climbing 0.35% to 0.7733 and USD/CAD inching down 0.05% to 1.0566.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.01% to 84.70.
Later in the day, Germany was to produce official data on industrial production, while the eurogroup of euro zone finance ministers were to hold talks in Brussels.
In addition, ECB President Mario Draghi was to testify before the committee on Economic and Monetary Affairs in the European Parliament in Brussels.
