The U.S. dollar pushed higher against a basket of the other major currencies on Monday, buoyed by expectations for higher interest rates, while fresh Brexit woes pushed sterling to its lowest level since September.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.17% to 95.19 by 10:58 AM ET (14:58 GMT), re-approaching the one-year peak of 95.44 hit on July 19.

Demand for the dollar was underpinned after the latest U.S. jobs report underlined expectations for the Federal Reserve to stick to a gradual pace of rate hikes this year.

U.S. job growth slowed more than expected in July, the Labor Department reported Friday, but labor market conditions continued to tighten, cementing expectations for anticipated rate increases in September and December.

The U.S. central bank kept interest rates on hold last week, but said the U.S. economy was strong, indicating that it is on track to deliver two further rate hikes this year.

The pound slumped to 11-month lows against the broadly stronger dollar amid mounting worries over Brexit after Britain’s international trade secretary warned that a no-deal Brexit was now more likely than not.

GBP/USD hit a low of 1.2920, its weakest since September 4 and was last at 1.2941, off 0.48% for the day.

Meanwhile, an opinion poll out Monday showed that public support for British Prime Minister Theresa May’s handling of the Brexit negotiations has hit a record low.

Just 24% of the public approve of how negotiations are going, down from 40% in April.

The euro touched a four-and-a-half week low against the dollar, with EUR/USD falling as low as 1.1530 before easing back to 1.1558.

The single currency has been pressured lower by the diverging monetary policy outlook between the Fed and the European Central Bank, which has pledged to keep interest rates on hold through the summer of 2019.

The single currency was also hit after data showing that German factory orders slumped by 4% in June, the biggest fall in almost 18 months amid weaker overseas demand.

The unexpectedly weak data added to fears over the economic impact of rising trade tensions.

The dollar pushed higher against the yen, with USD/JPY adding on 0.14% to trade at 111.43.

Elsewhere, the Turkish lira fell to fresh record lows against the U.S. currency as frictions between the U.S. and Ankara mounted.

The lira has already lost around 36% this year amid selling sparked concerns over President Tayyip Erdogan's push for greater control over monetary policy.
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