The U.S. dollar traded near its highest level in three months against a basket of major currencies on Monday as Fed Chair Janet Yellen remarks last week wiped out any suspicions the Fed may postpone its rate hike decision to 2016.
The dollar index, which tracks the green currency’s movements versus a basket of major currencies, hit a peak of 98.22 while currently hovering around 98.05 amid the absence of economic data from the United States.
The green currency took an upside lift last week after Yellen said the Fed was on course to raise interest rates this year, citing the improvement in the labor market and the economy in general.
Eyes will focus later in the week on U.S. housing, unemployment and manicuring data to get clues whether the rate hike would occur in September or later.
The dollar faced slight downside pressure from the euro as Greece reopened banks and announced it would pay debt to its creditors, the ECB and IMF, from the 7 billion euros emergency fund approved by the EU on Friday.