TOKYO- The dollar nursed losses against most currencies in subdued trade on Monday as disappointing US jobs data caused some investors to scale back bets on a rebound in the greenback.
The euro held gains versus the dollar but faces a test later on Monday with data that is expected to show German industrial output growth slowed at the end of last year.
Speculators have been reducing short positions in the dollar, but some analysts say better US economic data and continued progress in fighting the COVID-19 pandemic will be needed for further dollar gains.
“Soft non-farm payrolls has really pulled the ladder out from under the dollar,” said Yukio Ishizuki, foreign exchange strategist at Daiwa Securities.
“Now the markets are questioning whether the dollar can rise any further. A lot depends on the coronavirus, but we also need to know when US fiscal stimulus will pass.”
Against the euro, the dollar traded at $1.2034 after a 0.7 percent slump on Friday.
The British pound bought $1.3726, close to an almost three-year high.
The dollar was quoted at 105.49 yen, having pulled back from a three-month high reached on Friday.
The US economy created fewer jobs than expected in January while job losses the previous month were deeper than initially reported, data at the end of last week showed.