The dollar was perched near a two-month high on Monday after a blowout US jobs report sent traders ramping up bets on a Federal Reserve rate hike this year, while the yen teetered further into the intervention zone.Early moves in currencies were largely muted with markets in Australia closed for a holiday, though the dollar held to its strong gains made in the wake of the report which showed nonfarm payrolls increased by 172,000 jobs last month, far exceeding estimates.
Against the dollar, the euro fell to a two-month low of $1.1507, while sterling struggled at a three-week trough of $1.33165.
The Australian and New Zealand dollars similarly slid to their lowest in two months at $0.7016 and $0.5779, respectively.
"The US payrolls report released [...] paints a picture of a US labour market that is strengthening despite the ongoing energy price shock," said Jonas Goltermann, chief markets economist at Capital Economics.
"That combination makes policy tightening by the Fed later this year increasingly probable [...] we now expect the FOMC to deliver two 25-basis-point rate hikes later this year, in response to the energy supply shock and the re-acceleration of the US labor market."
