NEW YORK CITY: The euro rebounded Monday after last week's losses that came on the back of the European Central Bank's surprise rate cut and unexpectedly strong US economic data.
At 2200 GMT Monday the euro was trading at $1.3407, up from $1.3368 late Friday.
The dollar however pulled higher against the yen, climbing to 99.20 yen from 99.04. The euro rose to 133.01 yen from 132.40.
Despite Monday's slip, Kathy Lien of BK Asset Management said she still expects the dollar to strengthen as expectations rise of an earlier tightening of policy by the Federal Reserve.
Last week's strong jobs data and a better-then-expected number for third quarter economic growth, 2.8 percent, has raised expectations that the Fed could cut back its stimulus program at their meetings in mid December or late January.
"Investors should expect a consistent rise in US yields as the Fed unwinds quantitative easing," Lien said Monday.
"Thanks to Friday's stronger than expected non-farm payrolls report, 10 year US yields are making their way to 3 percent."
Sameer Samana of Wells Fargo Advisors said the stronger US growth picture, especially compared with other leading economies, backs a stronger dollar outlook.
"Considering the advantages in better growth improvement and higher yields in the US economy, we look for the US dollar to gain on its main competitors' currencies," he said.
"Our target for the euro is $1.27 to $1.32 for the end of next year."
The British pound fell against the greenback, dropping to $1.5981 from $1.6019. The dollar though fell to 0.9194 Swiss franc from 0.9216 franc.
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