The greenback staged a big rally on Monday and pushed its counterparts to years lows following a strong U.S. jobs report that highlighted the robust of the US economy, complicating expectations for additional Federal Reserve interest rate cuts this year.

The dollar index that gauges the greenback versus its major pairs hit the highest level in two years at 109.98, continuing the recent surge of the earlier week.

EUR/USD touched its lowest level at $1.0275, a level not seen since November 2022.

GBP/USD dipped below 0.55, hitting the lowest level in 14 month of $1.2128.

The sterling was under stress due to domestic concerns over rising borrowing costs and spiked worries about Britain's financial situation. It almost dropped to 1.8% the earlier week.

The December Non-Farm Payroll report showed unexpected U.S. job growth and a drop in the unemployment rate to 4.1%, signalling a strong labour market and prompting traders to cut expectations of Federal Reserve rate cuts this year.

With the U.S. inflation report due on Wednesday, any unexpected rise could eliminate the possibility of rate cuts entirely. Additionally, several Fed officials are scheduled to speak this week.