On Monday, the US dollar rose against key currencies to an eight-week high. Traders have become more cautious in their estimates of the extent of the Federal Reserve's rate cuts this year due to the continuing resilience of the US economy.

Meanwhile, the yen, the Australian dollar, and the New Zealand dollar fell to two-month lows in Asian morning trading. The euro reached a more than one-month low at $1.07675. At the time of writing, the single European currency was trading at $1.0782.

The pound fell by 0.18%, to $1.2610. Earlier, the British currency had reached a low of $1.25985, the lowest since January 17.

The US dollar index, which reflects its value against a basket of currencies, reached a peak of 104.18, the highest since December. At the time of writing, the index had stabilized at 104.02.

The change in investors' forecasts regarding the Federal Reserve's key interest rate cut was linked to the US labor market data released on Friday, which significantly exceeded market expectations. The data supported the statements made last week by Fed Chairman Jerome Powell after the meeting, indicating that a rate cut in March is unlikely.

According to CME FedWatch, traders are pricing in less than a 20% chance of rate cuts beginning in March, whereas a week ago, it was estimated at almost 50%. The likelihood of rate cuts in May has also decreased.