The dollar index (DXY00) on Monday rose by +0.48%. The dollar Monday moved moderately higher on carryover support from last Friday’s stronger-than-expected U.S. March payroll report, which bolstered the outlook for the Fed to keep raising interest rates. Also, a slump in stocks on Monday boosted the liquidity demand for the dollar. In addition, higher T-note yields on Monday strengthened the dollar’s interest rate differentials and supported the dollar.
Last Friday’s monthly U.S. payroll report was bullish for the dollar. U.S. March nonfarm payrolls rose +236,000, stronger than expectations of +230,000. Also, the March unemployment rate unexpectedly fell -0.1 to 3.5%, showing a stronger labor market than expectations of no change at 3.6%.
