Dollar opens lower after strong end to week on robust non-farm payroll data



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Dollar opens lower after strong end to week on robust non-farm payroll data

The American currency opened slightly lower on Monday after wrapping up last week in an upbeat note, as frets of a recession in the US began to take a greater toll. As of morning US trading hour on Monday, the US Dollar Index (DXY) was trading 0.2 per cent lower to 105.93, while against the bloc's common currency Euro, was last trading 0.23 per cent lower to $1.2036, while British Pound was trading water at $1.2085.

Besides, Aussies added 1.07 per cent to $0.6984 and Canadian Dollar gained 0.66 per cent $1.2850 , while Japanese yen was last trading 0.27 per cent higher against its American peer to 134.65 yen per Dollar. Safe-haven Swiss Franc jumped 0.69 per cent to $0.9550 against its American counterpart.

Nevertheless, on Friday, the US Dollar Index (DXY) measured against a basket of six major currencies on an average gained as much as 0.77 per cent, paring Thursday’s steep downward spiral, as an unexpectedly strong US non-farm payrolls data had spurred up investors’ bet that the US Fed would continue to gamble on its hawkish monetary policy to turn down a stabbing inflation-surge.

In the matter of the fact, in the day’s torrential high-tide in US Dollar Index comes over the heels of a stronger than anticipated US job report as beforementioned, as US employers had created 528,000 jobs last month with end-consumers bearing the heaviest brunt of a malevolent increase in inflation indicators, proffering an excuse for the US Fed to continue to hike its benchmark borrowing cost.

Besides, US unemployment rate fell to a pre-pandemic level of 3.5 per cent compared to a 3.6 per cent a month earlier, however, a wage growth of 5.6 per cent on an annualized basis would highly likely to keep inflation indicators elevated.

Dollar opens lower after strong rebound on upbeat non-farm payrolls

Citing statistics, on Friday's FX market wind-down, the US Dollar Index (DXY) measured against a basket of six major currencies had recouped all of its losses engulfed yesterday, as the Index gained 0.77 per cent to 106.20.

Besides, Euro, the bloc’s’ common currency shared among 19 member states, plummeted 0.64 per cent to $1.0177 against its American peer, while British Pound shrugged off 0.75 per cent to $1.2065. Euro lost almost all of its ground gained against the greenback yesterday, however, against the trend, Rouble remains stable at 60.45 per US Dollar.

Safe-haven Japanese Yen lost 1.62 per cent to 135.04 yen per Dollar, while risk-sensitives loonies like of Aussies faltered 0.84 per cent to $0.6911 against its American counterpart, while Canadian Dollar shed 0.57 per cent to $1.2934.