The dollar hit a fresh 15-month high versus the yen and hovered near multi-month peaks against other major peers on Thursday, ahead of a key U.S. jobs report that should offer clues on when the Federal Reserve will start to pare back stimulus.
The U.S. currency rose as high as 111.165 yen for the first time since March 26, 2020, before easing back slightly to 111.055.
The dollar index, which measures the greenback against six counterparts, held just below a 2 1/2-month top of 92.451 reached Wednesday, edging up on the day to 92.402.
The index posted its best month since November 2016 in June, driven by the Fed’s surprise hawkish shift in the middle of that month, when policymakers signaled two interest rate hikes by
the end of 2023.
Traders are looking to Friday’s U.S. nonfarm payrolls report for confirmation of that outlook, with economists polled by Reuters expecting a gain of 700,000 jobs last month, compared with 559,000 in May, and an unemployment rate of 5.7% versus 5.8% in the previous month.
The yield on the benchmark 10-year Treasury note rose less a basis point to 1.475% at 3:50 a.m. ET. The yield on the 30-year Treasury bond advanced to 2.101%. Yields move inversely to prices.
· Yuan extends losses after worst month since Aug 2019
China's yuan extended losses against the dollar on Thursday, after posting its biggest monthly drop since August 2019, dragged lower by broad strength in the greenback in global markets.
But trading was tepid as temporary closures of some major
state-run banks in Beijing for the 100th anniversary celebrations of the Chinese Communist Party on July 1 had thinned volumes and liquidity, traders said.
Prior to the market opening, the People's Bank of China
(PBOC) set the midpoint rate at a near one-week low
of 6.4709 per dollar, 108 pips or 0.17% weaker than the previous fix of 6.4601.
Reference: CNBC, Reuters
Thai
Eng