Currency traders are looking past the ongoing crisis between the US and Venezuela, with the dollar climbing to a 3-1/2-week peak versus the euro.
Traders, instead, are focusing on a slate of U.S. macroeconomic indicators due this week that could be crucial in steering Federal Reserve policy.
The dollar hit two-week highs against the yen, Swiss franc, and Canadian dollar in the first full trading week of 2026.
The United States at the weekend, raided Venezuela and captured President Nicolas Maduro.
The dollar advanced 0.3% to $1.1682 per euro, after earlier touching its strongest level since December 10 at $1.1672.
It climbed as high as 157.295 yen, 0.7951 Swiss franc, and C$1.37771, all of which were the highest levels since December 22.
Traders currently expect two U.S. rate cuts this year, according to calculations by LSEG based on futures.
Investors are also awaiting U.S. President Donald Trump’s choice for the next Fed chair, as Jerome Powell’s term is set to end in May.
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Trump has said he will announce his pick this month, and has said Powell’s successor will be “someone who believes in lower interest rates, by a lot.”
The dollar advanced 0.1% to $1.3425 per British pound, and added 0.3% to $0.6670 versus the Aussie dollar.
