The US dollar hovered around one-month lows as the market anticipations of the Federal Reserve tapering waned amid weak employment data.
- The dollar index posted a slight gain of 0.05% to 92.155, after falling to 91.941 for the first time in a month on Friday. The greenback also continued to fall in the middle of its two-month trading range against the yen, up 0.1% to 109.79.
- The depreciation came after the release of weaker-than-expected employment data, indicating that nonfarm payrolls grew by just 235,000 in August versus the economists’ expectations of 728,000.
- The Federal Reserve has repeatedly said that the labor market will be one of the criteria it will be looking at in considering scaling back its bond-buying program. Lenders now expect this to happen months later than earlier predicted.
The euro was flat at $1.18775, while the Australian dollar was down 0.17% to $0.7435, and New Zealand’s kiwi fell 0.07% to $0.71445.