USD retreats from 20-year high on mixed US jobs report

The dollar softened from a 20-year high on Friday after data showed the pace of U.S. employment rose more than expected last month, but wage growth has slowed and the unemployment rate has risen. , giving the US Federal Reserve some wiggle room when it hikes rates later this year.

The U.S. economy added 315,000 jobs last month, according to data, beating the consensus forecast of 300,000 jobs by economists surveyed by Reuters, marking the 20th straight month of job gains.

The Dollar Index, which tracks the currency against its six counterparts, zigzagged following the report, trading thin ahead of the long US Labor Day weekend.

Photo: EPA-EFE

The US currency fell 0.07% at 109.61, but rose 0.74% for the third straight week of gains.

The dollar rose by NT$0.057 to close at NT$30.588. This is the highest value in 34 months against the New Taiwan Dollar. Taiwan Dollar was 30.611 Taiwan Dollar against US Dollar on October 21, 2019.

“Mixed nonfarm payrolls provided an excuse to book profits as the dollar soared to a 20-year high,” said Joe Manimbo, senior market analyst at Convera. rice field.

The U.S. currency surged to 109.99 on Thursday, its strongest level since June 2002, as Fed Chairman Jerome Powell said at a symposium in Jackson Hole, Wyoming, on Aug. It has soared ever since he said, “We need to.” To combat stubborn high inflation.

“Overall, markets are bracing for a more aggressive tightening by the Fed,” said Edward Moya, senior market analyst at Oanda.

Federal Reserve futures were unchanged after the jobs report and priced in a 75% chance that the Fed would raise rates by 75 basis points this month, according to Refinitiv data.

The euro gained 0.21% against the dollar, recovering some of the previous day’s losses but still trading below par at US$0.9965.

With the European Central Bank scheduled to meet next week, financial markets are betting on an unprecedented 75 basis points rate hike.

The pound fell 0.24% against the dollar to $1.1516, ending the week down about 1.9%. Britain’s new prime minister is due to be announced tomorrow when the ruling Conservative party’s leadership election is finalized, which could prompt further pound moves.

The dollar rose 0.04% to ¥140.125 against the rate-sensitive yen.

The dollar climbed above 140 on Thursday for the first time since 1998.

Japan’s Finance Minister Shunichi Suzuki said on Friday that the Japanese government would take “appropriate” action when necessary.

Additional reporting by staff reporter, with CNA

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