The euro raced to a near six-week high against the dollar and scaled a fresh five-year peak versus the yen on Monday after strong U.S. payrolls data boosted risk appetite despite threats of a possible reduction in the U.S. monetary stimulus.
The closely watched U.S. payrolls report on Friday showed employers hired more workers than expected in November, driving the jobless rate to a five-year low of 7.0 percent.
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"The financial markets interpreted the data as suggesting there's no need to be pessimistic about the global economy, leading to risk-on trades," said Minori Uchida, chief currency analyst at the Bank of Tokyo-Mitsubishi UFJ.
The dollar initially rose on the data, which added to speculation that the Federal Reserve could start scaling back stimulus this month. Tighter U.S. monetary policy means less dollars to go around in markets, and is seen positive for the dollar.