The dollar's climb against major world currencies on international markets reflected forex traders' expectations that the U.S. Federal Reserve would continue its cycle of interest rate increases, and raise the federal funds rate by another quarter of a percent to 4.25% per year.
The European Central Bank is also expected to bring up its interest rate by 0.25% to 2.25% per year.
Analysts say the Federal Reserve's cycle of interest rate increases is not yet over, unlike the European Central Bank's, which makes the further dollar rallying appear likely.
"The positive interest rate difference in favor of the dollar was the main driver of the greenback's growth last week," Vladimir Abramov of Globex Bank said.
However, the dollar's growth on the Russian forex market was restrained by the seasonal factor, as banks effected ruble settlements at the end of the month to make tax payments, boosting ruble demand.
Analysts believe the dollar-ruble dynamics on the Moscow Inter-Bank Currency Exchange this week will depend on U.S. macro data, which is expected to be positive.
