The US dollar extended gains against a basket of currencies on Monday after a stronger-than-anticipated jobs report for July on Friday raised expectations that the Federal Reserve is closer to raising interest rates. Nonfarm payrolls rose by 255,000 jobs in July, more than the Reuters forecast of 180,000 for the month, and wages picked up, with hiring broadly based across the sectors of the economy.
The data helped offset concerns about sluggish economic indicators, including preliminary estimates of weak gross domestic product for the second quarter, released in late July. "We're seeing the aftermath of the (payrolls) last week," said Mark McCormick, North American head of FX strategy at TD Securities in Toronto.
The dollar index, which tracks the greenback against a basket of six major rivals, gained 0.23 percent to 96.421. The dollar was up 0.73 percent against the Japanese yen at 102.52. Trading this week is expected to be relatively light, with many traders and investors on summer vacations. Friday's retail sales report for July will be the next major US economic focus. The Reserve Bank of New Zealand is likely to be the next central bank to ease conditions on Thursday, when it is expected to cut rates by 25 basis points to 2.00 percent. The kiwi fell 0.35 percent against the US dollar on Monday at $0.7115.
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