Dollar pounded as investors turn to US job data



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Dollar pounded as investors turn to US job data

The American currency had been hit with a hefty whiplash on Thursday with the US Dollar Index (DXY) measured against a basket of six major currencies on an average plummeted as much as 0.70 per cent, as investors seemed to have paid less attention on US Fed’s ultra-hawkish monetary policy aimed at taming a teetering inflation-surge.

In the matter of the fact, in the day’s sharp downswing in US Dollar Index came forth as investors appeared to be betting on a cautious play ahead of the highly anticipated US job data amid a sharp decline in US factory activities.

On top of that, US Fed’s July policy meet had revealed that the US economy would likely to shrink further over second half of year following two consecutive quarters of depreciation in GDP (Gross Domestic Product), while many analysts were accusing the US Fed’s ultra-hawkish stance behind the latest contraction with a recession in focus.

Besides, in the vivid illustration of a vindication of US Fed’s July policy meet report, the number of Americans filing for state unemployment benefits for the first time on their lives rose last week.

Dollar slips as investor remain cagey on US job data

Citing statistics, in the day’s FX market round-off, the US Dollar Index (DXY) measured against a basket of six major currencies on an average skidded 0.69 per cent to 105.42.

In tandem, Euro, the bloc’s common currency shared among 19 member states on an average gained 0.79 per cent to $1.0244, while British Pound added 0.19 per cent to $1.2166 against its American counterpart. Safe-haven Japanese Yen spanned its winning streak against the greenback, strengthening 0.76 per cent to 132.83 yen per US Dollar.

Risk sensitive loonies like of Aussies rose 0.22 per cent to $0.6969 against its American peer, while Canadian Dollar fell 0.18 per cent to $1.2864.