NEW YORK: The dollar gave back some ground Monday on profit-taking after Friday's sharp rise following a surprisingly good US jobs report.
The dollar fell against the euro, the Japanese yen and other major currencies on a quiet day as far as US economic data.
On Friday, the Labor Department reported the US added 321,000 jobs in November, 90,000 more than expected, underscoring the country's divergence with Europe and Japan.
The strong jobs report bolstered beliefs that the US Federal Reserve could accelerate a plan to raise interest rates, which is currently expected in the middle of 2015.
"Market conviction is growing in a Fed rate hike next year," said Joe Manimbo, senior market analyst at Western Union Business Solutions.
"Still, dollar rallies could get undercut by market profit-taking on its torrid strength while relatively low US yields risk limiting its rise."
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