Dollar gains as rate rise expectations grow
This morning the dollar stood at 1.7360 against the pound and was at 1.1905 to the euro.
Data from the US is persuading observers stateside that the economy is in good health, with the prospects for the Fed continuing to hike rates growing.
Analysts such as Rabobank's Jeremy Stretch say there is scope for as many as three further rate rises, as he explained to Bloomberg.
"The US economy is still powering ahead and that keeps the market firmly focused on the fact that the Fed has further to go,'' he commented.
Last week the dollar gained on the back of service sector figures which heralded improving economic indicators, while the personal consumption expenditure index (PCE) released by the Commerce Department also encouraged investors.