Dollar rises against most majors

The dollar advanced against most major currencies on Monday, nearing a one-month high versus the euro, after an upbeat US jobs report last Friday reinforced expectations of higher US interest rates.
The yen, however, steadied as Japanese exporters took advantage of the dollar's rise to 7-week highs on Friday to buy the Japanese currency, traders said.
The dollar was boosted after US jobs growth figures were revised upwards for the last five months of 2005, keeping the market optimistic about economic recovery despite data showing fewer new jobs were created than expected in January.
Federal Reserve official Richard Fisher also pointed on Monday to a possible upward revision to last quarter's GDP figures.
"The payrolls data managed to change interest rate expectations - the market was pricing in a March (US rate) hike by about 75-80 percent before the payrolls numbers came out. Once they had come out that was pushed towards 90 percent," Standard Chartered currency strategist Marios Maratheftis said.
"The fact that it's not 100 percent priced in yet implies that there could be more upside for the dollar in the short-term," he added.
The dollar has regained poise this month, after dipping in January, since the Federal Reserve raised its federal funds rate for the 14th straight time to 4.5 percent last Tuesday and left room for further increases.
By 1254 GMT, the euro was trading at $1.1984, down a third of a percent on the day and hovering close to Friday's one-month low of $1.1967. The euro was not helped by data showing an unexpected decline in German manufacturing orders. Orders fell 1.6 percent from November, adjusted for seasonal swings.
The German finance ministry noted however that December's drop in demand was not unusual after the healthy gains in the three preceding months and said the trend in orders was still up.
The dollar was at 118.75 yen, down 0.1 percent from its level in late New York trade on Friday, when the US currency rose as high as 119.39, a seven-week high.
Traders said Japanese exporters are keen to buy yen around 118 yen and institutional investors are showing buying demand for euros around $1.1950.
Dallas Fed's Fisher said on Monday that US fourth quarter growth could be revised higher and the country's rampant housing market did not pose the peril many seem to think.