The dollar rose in European trade on Monday against a basket of major rivals, maintaining gains for the third straight session and almost touching six-week highs on active demand.

The haven appeal of the dollar is increasing amid mounting political risks in Europe, while the Federal Reserve is expected to maintain interest rates high for most of the year.

The Index

The dollar index rose 0.15% today to 105.65, with a session-low at 105.49.

The index closed up 0.3% on Friday, the second profit in a row, marking a six-week high at 105.81 on strong demand.

The index rose 0.55% last week, the second weekly profit in a row, and the largest since early April.

Strong Demand

The US dollar is receiving strong demand as the Fed maintained interest rates high for the seventh meeting in a row while multiple central banks in Europe, Canada, and Switzerland cut their rates by 25 basis points in recent weeks.

US Yields

US 10-year treasury yields rose 0.65% on Monday, on track for the first profit in five sessions away from ten-week lows at 4.190%.

Fed Minneapolis Chair Neil Kashkari said the expected move would be a single interest rate cut by the Federal Reserve this year, likely in December.

US Rates

According to the Fedwatch tool, the odds of a US Fed interest rate cut in September stand at 67%, and at 80% in November.

Investors are mostly expecting a single Fed interest rate cut this year.

Important Data

Now investors await a batch of important US retail sales, PMI, and unemployment claims data later this week, in addition to speeches by several Fed officials.