The dollar climbed against major currencies after the release of stronger-than-expected US jobs data. The report indicated a healthy labor market, bolstering confidence in the American economy.

The positive economic data has led to increased speculation about potential interest rate hikes by the Federal Reserve. Investors are closely monitoring economic indicators for further clues about the Fed’s future monetary policy decisions.

Analysts suggest that continued strong economic performance could prompt the Fed to tighten monetary policy more aggressively than previously anticipated. This expectation is contributing to the dollar’s current strength.

However, some analysts caution that the dollar’s gains could be limited by concerns about the US trade deficit and other economic challenges. They emphasize the need for sustained economic growth to support further dollar appreciation.