Safe-haven demand and stronger US jobs data fuel expectations of a Federal Reserve rate increase later this year.
The US Dollar Index (DXY) rose to 100.10 in Asian trading, extending gains for a second day. Escalating Middle East tensions, including a missile attack from Yemen toward Israel, boosted demand for the safe-haven USD.
US Nonfarm Payrolls grew by 172,000 in May, exceeding revised April figures of 179,000, while unemployment held at 4.3%. The data reinforced bets that the Fed may tighten policy later this year, despite expectations of a June hold.
Oil prices climbed amid fears of renewed inflationary pressures, further supporting the dollar’s strength.