Dollar sinks to one-month low before payrolls test
The dollar sank to its lowest in almost a month against major rivals on Friday, ahead of a crucial U.S. jobs report that could spur the Federal Reserve to an earlier tapering of stimulus.
The dollar index, which measures the greenback against six peers, was little changed at 92.207 after earlier touching 92.151 for the first time since Aug. 5.
The euro was also mostly flat at $1.1878, after hitting the highest since Aug. 4 at $1.1884, supported by regional inflation at a decade high and hawkish rhetoric from European Central Bank officials ahead of a policy meeting on Sept. 9.
“The market is seemingly running a progressive short USD position into today’s non-farm payrolls,” Chris Weston, head of research at broker Pepperstone in Melbourne, wrote in a client note.
The rally toward $1.19 “is not just a USD move, but a play on next week’s ECB meeting, with some talk the central bank could signal a slower pace of asset purchases,” he wrote.
Meanwhile, the U.S. central bank has made a labour market recovery a condition for paring pandemic-era asset purchases.
Reference: CNBC
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