SINGAPORE : The dollar made a firm start to the week as Treasury yields rose with expectations of rapid-fire U.S. interest rate hikes, while talk of bans on Russian gas kept the euro within sight of its 2022 lows.
Germany's defence minister said on Sunday that the European Union must discuss banning imports of Russian gas, which could drag further on growth and the currency, after Ukrainian and European officials accused Russian forces of atrocities. "Negative news on the war or a further lift in energy prices could see EUR/USD test $1.0800," Commonwealth Bank of Australia analysts said in a note.
Elsewhere, talk of new sanctions kept the broad mood cautious in early trade, and the dollar was up a bit against the Australian and New Zealand dollars as the commodity currencies' rally cools with easing export prices. [AUD/]Data on Friday also showed U.S. unemployment hitting a two-year low of 3.6per cent last month, strong enough that investors bet it would strengthen the Federal Reserve's resolve to tackle inflation by lifting rates sharply.