TOKYO – The dollar hovered below a twomonth high versus major counterparts on Tuesday, with traders largely sidelined ahead of a closely watched US jobs report, which could sway the timing of an exit from Federal Reserve stimulus.
The dollar index, which tracks the greenback against a basket of six major currencies, was at 91.884 early in the Asian session after retreating from as high as 92.408 on June 18, in the week the Federal Open Market Committee shocked markets by predicting two interest rate hikes by end-2023.
The Fed commentary since then has put the focus on the data to determine when a tapering of asset purchases and higher rates are appropriate, with Chair Jerome Powell saying a weak ago that policymakers won’t act on just the “fear” of inflation, and will encourage a “broad and inclusive” job market recovery.
The US Labor Department is expected to report a gain of 690,000 jobs in June, compared with 559,000 in May, and an unemployment rate of 5.7 percent versus 5.8 percent in the previous month, according to a Reuters poll of economists.
Investors are also looking at US consumer confidence data on Tuesday as well as the Institute for Supply Management’s manufacturing index on Thursday for clues as to where interest rates are headed.
The dollar bought 110.620 yen, hanging below a nearly 13-month high of 111.110 reached last week.
