The dollar index rose to above 99, the highest since May of 2020 benefiting from some safe-haven bids from the Russia-Ukraine war after the fighting in Ukraine intensified during the weeknd and President Putin said the war would continue. Last week, stronger-than-expected US jobs report brought forward the expectations of more aggressive action from the Federal Reserve giving the dollar an additional boost.
Fed Chair Powell has recently pointed to a 25 basis point rate hike in March but opened the door for a more hawkish move if inflation does not abate as anticipated. The most pronounced buying activity was against the euro, with inflation in Europe surging to a record high of 5.8% in February, putting the ECB policymakers in a tough spot next week when they meet to set policy amid the fog of war.