By Saikat Chatterjee
LONDON (Reuters) – The dollar climbed on Monday, building on last week’s gains as weakness in global markets, led by Chinese equities, and recent strong U.S. data boosted demand for the greenback.
Against a basket of its rivals (=USD) the greenback rose 0.2 percent to 95.85, edging toward a 14-month high of 96.991 hit in mid-August.
“The dollar has been supported by some strong data but with the market already long dollars at these levels, new data has to surprise investors by a bigger margin to push it higher,” said Manuel Oliveri, an FX strategist at Credit Agricole (PA:CAGR) in London.
The dollar climbed half a percent last week, marking its second consecutive week of gains as hedge funds ramped up their dollar holdings by $3.4 billion to $28.7 billion last week, the largest since end-December 2016, according to latest data.