The dollar index firmed up above 98.5 on Monday after rising for two straight sessions, as a strong US jobs report strengthened the case for more aggressive Federal Reserve rate hikes to tame decades-high inflation. The American economy added 431,000 jobs in March, falling short of expectations, but the unemployment rate fell to a new 2-year low of 3.6% and wage growth re-accelerated, supporting a 50 basis point rate increase in May.
The dollar also gained markedly against the euro amid talks of further sanctions against Russia. German Chancellor Olaf Scholz said Sunday that western nations will impose additional sanctions on Russia in the coming days after Ukraine accused Russian forces of war crimes.