Investing.com - The dollar was broadly higher against a basket of other major currencies on Monday, trading at a 11-1/2 year peak as growing expectations for a near-term U.S. rate hike lent broad support to the greenback.
The dollar remained broadly supported after the latest U.S. jobs report heigthened expectations for higher interest rates.
The Fed is expected to begin raising interest rates around the middle of this year and investors were looking ahead to next week’s policy statement to see if it would drop its reference to being patient before raising rates.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, climbed 0.69% to 98.30, the strongest since September 2003.
The euro fell to fresh 11-1/2 year lows, with EUR/USD retreating 0.89% to 1.0758.
The euro remained under pressure after European Central Bank President Mario Draghi told Greek officials at a meeting on Monday that they must let euro-area representatives return to Athens and examine the government's books in order to obtain more aid.
Greece reportedly agreed to allow experts representing the European Commission, ECB and International Monetary Fund to start work in Athens on Wednesday.
Earlier Tuesday, official data showed that French industrial production rose 0.4% in January, confounding expectations for a 0.3% fall. December's figure was revised to an increase of 1.4% from a previously estimated 1.5% gain.
The dollar was higher against the yen, with USD/JPY up 0.41% to 121.65, the highest since July 2007, while USD/CHF advanced 0.73% to a one-and-a-half month high of 0.9930.
Sterling slid lower, with GBP/USD dropping 0.32% to 1.5078.
AUD/USD declined 0.91% to 0.7634, while NZD/USD tumbled 1% to 0.7281. Separately, USD/CAD rose 0.37% to trade at 1.2652.