The US dollar rose on Monday, to extend its gains for the fourth straight day near a 4-month high, based on strong demand and investors' risk aversion due to growing concerns over the US bond market, and rising bets the US Fed would scale back monetary policy easing programs to counter the rising inflation..
The dollar index rose 0.4% to the highest since November 24 at 92.31 points, after opening at 91.98 points, and hit a low of 91.84.
On Friday, the index rose 0.4%, its third consecutive daily gain, after strong jobs data in the United States.
The greenback gained 0.4% on Friday, and posted its third straight daily gain, after strong US jobs data.
The dollar index gained 1.2% last week, in its second straight monthly gain, thanks to strong demand investors' risk aversion, after the large jump in the US Treasury bond yields.
The 10-year US Treasury bond yields rose by 3% to extend gains for the fourth straight day, and hit a 13-months high at 1.622%.
This led investors to shun riskier assets, amid rising bets the US Fed would scale back monetary policy easing programs to counter the rising inflation.
The US Senate officially passed the $1.9 trillion Covid-19 relief package on Saturday, within President Joe Biden's efforts to support the US economy.
The US House of Representatives will pass the bill later this week, and President Joe Biden will sign it before the current unemployment compensation program expires on March 14.