2021.08.0920:50:00UTC+00Dollar Gains Against Major Rivals

The U.S. dollar gained against most of its major rivals on Monday as strong jobs data raised hopes that the Federal Reserve might hike rates sooner than earlier thought.

Hawkish comments from Federal Reserve officials suggest the central bank will begin to scale back its asset purchase program later this year.

Investors await U.S. inflation data due on Wednesday, and look ahead to speeches from several Federal Reserve officials to assess the outlook for monetary policy.

The U.S. Senate moved closer to the passage of a bipartisan infrastructure spending bill, which calls for $550 billion in new spending on transportation, broadband internet, water pipes and other public works systems.

Democrats unveiled the $3.5 trillion budget plan, which will extend household tax credits, expand Medicare benefits and enhance child care programs without Republican support.

After data released by the Labor Department showed a stronger than expected increase in U.S. employment in the month of July, a report released Monday morning showed U.S. job openings jumped to a record high in June and hiring increased.

The dollar index climbed to 92.99, gaining more than 0.2% from Friday's close.

Against the Euro, the dollar firmed to $1.1737 from $1.1764. The euro area Sentix investor confidence index dropped to 22.2 in August from 29.8 in the previous month. Economists had forecast the indicator to fall marginally to 29.0.

The Pound Sterling weakened against the dollar and is fetching $1.3849 now, compared to $1.3873 Friday evening.

The Yen weakened to 110.35, down 0.10% from the previous close of 110.23. The Yen had strengthened to 110.03 in the European session before turning weak.

Against the Aussie, the dollar strengthened to 0.7329 from 0.7356.

The dollar firmed to 1.0862 against Swiss franc, rising about 0.6%. Data from the State Secretariat for Economic Affairs showed Switzerland's jobless rate fell to a seasonally to 3% in July from 3.1% in June. On an unadjusted basis, the unemployment rate remained unchanged at 2.8% in July.

Against the Loonie the dollar strengthened to 1.2582, as crude oil prices tumbled on worries about outlook for energy demand due to the surge in the delta variant of the coronavirus and fresh restrictions on travels in several Asian countries.