Dollar hits YoY low against euro as traders await US jobs data, Federal Reserve speech
Date
8/21/2024 9:02:31 AM
(MENAFN) On Wednesday, the U.S. dollar fell to its lowest level of the year against the euro as traders eagerly anticipated updates to U.S. jobs data and a key speech by Federal Reserve Chairman Jerome Powell later in the week. The dollar's decline was partly attributed to a drop in U.S. bond yields, which reached their lowest point since August 5. This decrease followed weak monthly jobs figures that had heightened recession concerns and led to a significant plunge in yields, marking their lowest levels in over a year.
The dollar index, which measures the currency against a basket of major currencies including the euro, pound, yen, and others, fell to 101.34, its lowest since January 2. This decline represents a drop of 0.5 percent or more in each of the previous three sessions. In response, the euro rose to USD1.1131, its highest level since December 28, while the pound held steady at USD1.3033 after reaching a high of USD1.3054 on Tuesday, a level not seen since July of the previous year.
Against the Japanese yen, the dollar fell by 0.2 percent to 144.98 yen, dipping below the significant psychological threshold of 145 yen for the first time since August 6. The Australian dollar remained just below its one-month high of USD0.6749 achieved on Tuesday, while the New Zealand dollar rose to USD0.61585, reaching its highest point since July 8. The upcoming Federal Reserve speech at the Jackson Hole Economic Symposium is anticipated to provide crucial insights into potential future rate cuts and the trajectory of borrowing costs, further influencing currency movements.
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