Dollar slips in thin holiday trading on bets Fed is done with rate rises
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SINGAPORE/LONDON : The dollar edged lower on Monday, with U.S. markets closed for a holiday, as investors weighed U.S. jobs data that showed some signs of cooling, boosting bets the Federal Reserve could be at the end of its monetary tightening cycle.
Against a basket of currencies, the dollar inched 0.1 per cent lower to 104.14 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.
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.
