Dollar steadies after strong U.S. jobs report
The dollar held steady and hovered near previous high in early European trade on Monday. A strong nonfarm payrolls report last Friday caused investors to anticipate an early tightening of monetary policy by the United States’ Federal Reserve.
The Dollar Index that measures the greenback against other major currencies fell less than 0.1% at 92.79, close to a two-week high of 92.927 in the previous session.
The USD/JPY pair dropped to 110.22.
The EUR/USD pair was 0.1% higher at 1.1761 after touching a four-month low.
The GBP/USD pair was down to 1.3866, while the risk-sensitive AUD/USD pair was steady at 0.7352.
Nonfarm payrolls jumped by a healthy 943,000 in July based on Friday’s U.S. jobs report. May and June figures were also revised up.
Fed Vice Chair Richard Clarida noted last week that prerequisites for raising interest rates might be met as early as late 2022. Meanwhile, jobs growth of 800,000-1,000,000 in August and September would convince Fed Governor Christopher Waller to vote for tapering in September.