Dollar eases as traders bet Fed is done with rate rises
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SINGAPORE : The dollar drifted in cautious trading on Monday as investors weighed U.S. jobs data that showed some signs of cooling, boosting expectations that the Federal Reserve was likely at the end of its monetary tightening cycle.
Against a basket of currencies, the dollar inched 0.048 per cent lower to 104.18 but remained close to the two-month peak of 104.44 it touched on Aug. 25. The index gained 1.7 per cent in August, snapping its two-month losing streak.
With U.S. markets closed on Monday, liquidity is likely to be thin and traders hesitant in placing large bets.
Data on Friday showed U.S. job growth picked up in August, but the unemployment rate jumped to 3.8 per cent, while wage gains moderated. The economy created 110,000 fewer jobs than previously reported in June and July.
"The Goldilocks metaphor is much used and abused in economic and financial circles, but in relation to the various 'soft landing' signals emanating from the report, on this occasion it does seem entirely appropriate," said Ray Attrill, head of foreign-exchange strategy at National Australia Bank.
