Greenback's rally pauses at 11 1/2-year high

London

THE US dollar paused after hitting an 11 1/2-year high against a basket of currencies on Monday, but expectations that the Federal Reserve will raise interest rates soon are likely to underpin the greenback.

Surprisingly strong US jobs data last Friday increased the chances that the Fed will raise rates in mid-year. That pushed Treasury yields higher and widened their gap with government bonds from Japan and the eurozone.