The dollar climbed against the yen and the Swiss franc on Monday as a few investors positioned for an expected strong U.S. jobs data reading on Tuesday, which may revive debate about when the Federal Reserve will scale back monetary stimulus.
The dollar had been under pressure since the U.S. debt crisis flared, with disruption from the 16-day government shutdown that ended last week leading markets to conclude the Fed will delay plans to trim its bond buying for several months.
But the near-term focus was on the September jobs report, which was delayed due to the shutdown. It is forecast to show 180,000 jobs were created last month while the jobless rate is expected to remain steady at 7.3 percent.
If the data exceeds expectations, then speculation over whether the Fed can taper this year is likely to return, injecting some volatility in the currency market.