By Gina Lee
Investing.com – The dollar was up on Monday morning in Asia, climbing towards a four-month high against the euro. Investors are positioning for the U.S. Federal Reserve to begin asset tapering earlier than scheduled thanks to the latest, better-than-expected U.S. jobs report.
The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched up 0.01% to 92.808 by 12:48 AM ET (4:48 AM GMT).
The USD/JPY pair inched down 0.03% to 110.22, with Japanese markets closed for a holiday.
The USD/CNY pair inched down 0.09% to 6.4767. Inflation data released earlier in the day in China said the consumer price index (CPI) rose 1% year-on-year and 0.3% month-on-month in July. Meanwhile, the producer price index (PPI) rose 9% year-on-year in July.
The GBP/USD pair inched down 0.01% to 1.3870.
The U.S. currency got a boost from the strong U.S. jobs report that increased bets that the Fed could start asset tapering and hike interest rates earlier than expected. The report, released on Friday, said non-farm payrolls rose by 943,000 and the unemployment rate fell to 5.4% in July.
"U.S. payrolls were a game-changer," Chris Weston, head of research at brokerage Pepperstone in Melbourne, said in a note.
The dollar index is eyeing a close above the 93 mark, and the greenback could head for $1.1704 per euro, the note added. The dollar could also see further gains versus the yen as well.
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