Dollar rose in European trade against a basket of major rivals, maintaining gains for the second day and hovering near three-week high.
A stream of strong US labor data hurt the odds of early interest rate cuts by the Federal Reserve this year, in turn boosting the greenback.
Now traders await remarks by Fed officials in order to gathers more clues on the future of US interest rates this year.
The Index
The dollar index rose 0.2% to 102.62, with a session-low at 102.32, after rising 0.1% on Friday, approaching a three-week high at 103.1 following strong US jobs data.
The index rallied 1.1% last week, the first weekly profit in a month, and the largest since July as US 10-year treasury yields surged as well.
US Labor Market
US labor data proved more positive than expected and showed the labor sector remains tight, in turn raising inflationary pressures on the Federal Reserve.
The Fed might thus decide to maintain interest rates at high levels for an extended duration to bring prices down and slow down the economy.
US Rates
Following the data, pricing for a US 0.25% interest rate cut in March tumbled from 77% to 65%.
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