The dollar rose against major currencies on Monday, driven by persistent demand for safe-haven assets. Investors remain cautious due to concerns about the global economic outlook, particularly in light of ongoing challenges in Japan and Europe.

Factors Driving Dollar Strength

• Global Economic Uncertainty: Concerns about the pace of global economic recovery are fueling demand for safer investments.
• Japanese Situation: The ongoing aftermath of the earthquake and tsunami in Japan continues to weigh on investor sentiment.
• European Debt Concerns: Lingering worries about sovereign debt in some European nations are also contributing to risk aversion.

Analysts suggest that the dollar’s strength may persist in the short term as investors continue to seek shelter from global economic headwinds. However, longer-term prospects for the dollar will depend on the trajectory of the U.S. economy and monetary policy.