Despite Friday's disappointing U.S. jobs numbers, the dollar will continue to rein supreme assuming the Federal Reserve looks on course to raise rates before year-end, analysts say.
"We saw this last year, when U.S. first quarter gross domestic product (GDP) disappointed," DBS senior currency strategist Philip Wee told CNBC. "So, we had corrections in the dollar and the Dow (Jones Industrial Average), but the dollar went up very strongly in the second-half of (2014)".
Weaker-than-expected U.S. jobs data on Friday put a pause on the dollar's seemingly unstoppable rally. Non-farm payroll came in at 126,000 in March, sharply below expectations for a 245,000 increase in a Reuters poll and marking the lowest reading since December 2013. The data saw the U.S. dollar index drop 0.78 percent to 96.76 on Friday.
Expectations that the Federal Reserve will raise interest rates against the backdrop of policy easing at many central banks around the world have seen the greenback surge. The U.S. dollar index, which measures the dollar's value against a basket of currencies, has risen 21.2 percent since July.
"Jobs growth was not good, but wages did increase a bit and the unemployment rate was okay," NLI Research Institute's senior economist Tsuyoshi Ueno told CNBC by phone. "From next month onwards, the economy should bounce back from the cold weather and West coast port strikes."
Coast isn't clear yet
Downward revisions to jobs data for January and February showed the U.S. added fewer jobs than previously believed, exacerbating concerns about the economy.
"Some caution is setting in after Friday's non-farm payroll reports," NLI's Ueno said. The January and February figures that were underpinning the bullish outlook for the U.S. economy were too good to be true, he added.