The dollar index stabilized above the 95.5 mark on Monday after posting its worst week since March 2020, as surprisingly strong jobs data provided support, while traders await US inflation data for release on Thursday to guide policy outlook.
The US labor report showed the US economy added 467K jobs in January, much higher than market expectations for 150K additional jobs, pointing to a weaker impact of the omicron variant on US employment.
Investors now turn their focus on the latest US consumer price index which is expected to have risen in January by 7.3% from a year earlier, the largest such increase since 1982, bolstering speculations for a bigger 50 bps Federal Reserve rate hike in March.