SINGAPORE- The dollar took a breather on Monday, after recent gains ran into a speed bump when details of last week’s US jobs report soothed jitters about the timing of US interest rate hikes.
While the headline June job creation figure beat forecasts, unemployment ticked higher, workforce participation didn’t budge and the pace of hourly earnings growth slowed – suggesting rate rises could be further away than markets have come to fear.
Against the risk-sensitive Australian and New Zealand dollars the greenback slipped 0.7 percent and 0.9 percent, respectively in the wake of the data on Friday, and then steadied on Monday.
The dollar clawed back slightly against the yen, rising 0.14 percent to 111.15 yen early in the Asia session, after dropping just below 111 yen following the jobs report. The euro was steady at $1.1859, off Friday’s three-month low of $1.1807.
“The report was mixed enough to probably keep the Fed from announcing tapering soon,” said Westpac analyst ImreSpeizer on the phone from Christchurch, referring to the US Federal Reserve which sets the benchmark US policy rate.
“I think the market was thinking you’d get a signal at (the)Jackson Hole (meeting) in August. This report says that that just might be a bit early,” he said.
Sterling was steady at $1.3820.
