Dollar rose in European trade on Monday against a basket of major rivals, extending gains for the second day and hitting a four-week high amid a strong buying sentiment.

Gains are boosted by a surge in US 10-year treasury yields following strong US employment data, which hurt the odds of multiple Fed rate cuts this year.

The Index

The dollar index rose 0.4% to 105.39, the highest since May 14, with a session-low at 104.93.

The index rallied by over 0.8% on Friday, the third profit in four days, away from two-month lows at 103.99.

The dollar was underpinned by stellar US payrolls data last week, which helped it snag a 0.3% profit last week, the second weekly profit in three weeks.

US Yields

US 10-year treasury yields rose 0.8% on Monday, the second profit in a row, marking a week high at 4.469% and underpinning the dollar.

The developments came after the US payrolls report showed the worlds largest economy added more jobs than expected in May.

The gains came after the US payrolls report showed the addition of 272 thousand new jobs last month, above estimates of 182 thousand.

Following the data, the odds of a Fed 0.25% interest rate cut in September fell to 47%, and the odds of such a cut in November tumbled to 61%.