© Reuters. This illustration shows banknotes of the Saudi riyal, yuan, Turkish lira, pound, US dollar, euro and Jordanian dinar
By Stanley White TOKYO (Reuters) – The dollar was largely stable on Monday as investors soaked up last week’s strong US employment report and looked forward to data on the US services sector. To affirm a solid economic rebound from the impact of the coronavirus. The dollar posted its best quarter against major currencies in nearly three years in January-March thanks to the improvement in the US economy and rising Treasury yields. The U.S. currency is likely to build on those gains as investors look for ways to bet on a global economic recovery from the worst of the coronavirus pandemic, analysts said. “I thought there would be a downward correction in the dollar, but that didn’t happen,” said Masafumi Yamamoto, chief currency strategist at Mizuho Securities. “The dollar’s uptrend is very strong. In the new quarter perhaps the best thing investors can do is just follow this trend. The dollar last traded at 110.62 yen, not far from its strongest level in a year. Against the euro, the dollar was trading at $ 1.1760, close to a five-month high. The British pound was stable at $ 1.3826. The dollar rose to 0.9430 Swiss francs. The US economy created more jobs than expected in March, data showed on Friday. However, there was little reaction in currencies as most of the major equity and bond markets were closed for the Easter holidays. Overall, the outlook for the dollar remains strong as the underlying economic pulse pointed to a strengthened recovery. An Institute for Supply Management survey to be released later on Monday is expected to show that US non-manufacturing activity expanded at a faster rate in March. Trading was subdued in Asia on Monday as financial markets in Australia, New Zealand, China and Hong Kong are also closed, although the bias is for the dollar to strengthen further, analysts said. Short dollar positions in the forex market fell last week to their lowest level since June last year, data from the US Commodity Futures Trading Commission showed, another positive sign for the dollar. Elsewhere, the Australian dollar rose to $ 0.7613, while the New Zealand dollar bought $ 0.7027.