The safe-haven dollar found support just below last week’s peaks on Monday as renewed concerns about China’s property sector and looming U.S. labour data put investors in a cautious mood.
The greenback scaled a 14-month high on the euro and a 19-month top on the yen last week as markets reckoned U.S. interest rates could rise ahead of global peers.
The euro dipped back below $1.16 and at $1.1598 is not far from last week’s trough at $1.1563. The yen was little changed at 111.065 per dollar. The offshore yuan fell about 0.3%.
Evergrande said it requested a trading halt pending an announcement about a major transaction, while unit Evergrande Property Services Group said the announcement constitutes “a possible general offer for shares of the company.”
Investors are concerned that a collapse at Evergrande could hurt an already fragile Chinese economy and drag on global growth. The U.S. dollar index edged up 0.08% to 94.029.
Chinese markets were closed for a holiday.
On Friday, U.S. labour data is expected to show continued improvement in the job market, with a forecast for 460,000 jobs to have been added in September - enough to keep the Federal Reserve on course to begin tapering before year’s end.
· Strong NFP to keep the Fed on track to taper and underpin the dollar – ING
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