Dollar weakens in Asian trading amid concerns about US labor market, interest rate expectations
Date
5/12/2024 9:13:50 AM
(MENAFN) The dollar experienced a decline in early Asian trading today, following its recent downtrend against the euro and the British pound. This drop in the dollar's value was prompted by data indicating further signs of a slowdown in the American labor market, fueling speculation about the possibility of interest rate cuts later this year.
Against the yen, the dollar traded at 155.39 yen, down from its recent peak of 155.95 recorded in the previous session. Similarly, the euro saw gains, reaching $1.0782 after a 0.3 percent increase last night. The dollar index, which gauges the performance of the US currency against a basket of currencies, including the yen and the euro, settled at 105.25, reflecting the overall weakening trend.
The dollar's depreciation follows the release of data revealing a notable surge in first-time applications for government unemployment benefits in the United States. This uptick in jobless claims comes on the heels of a lackluster jobs report last week, further heightening market expectations of potential interest rate cuts in the near future.
Amidst these developments, US Treasury bonds and commodities experienced slight gains, while major currencies such as the yen and the British pound strengthened. However, sterling exhibited some fragility following the Bank of England's cautious assessment of monetary policy.
Overall, the currency markets remain influenced by ongoing uncertainties surrounding the outlook for US interest rates, with investors closely monitoring economic indicators and central bank policies for cues on future monetary policy decisions.
MENAFN12052024000045015682ID1108202958
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.