Dollar slips as Fed rate hike murky after US jobs data
Dollar slipped Friday on uncertainty about the timing of the Fed plan to raise interest rates.
NEW YORK (AFP) - The dollar slipped Friday under pressure from renewed uncertainty about the timing of the Federal Reserve s plan to raise ultra-low interest rates after a mixed bag of US jobs data.
The US August jobs report, the last monthly labor data before Fed policy makers meet on September 16-17, showed disappointing job growth but the previous two months gains were revised higher and the unemployment rate fell more than expected to 5.1 percent.
Analysts said that the jobs report would support a rate hike, but that China-driven global market turmoil could stay the hand of policymakers seeking the first increase since 2006.
The dollar traded at $1.1152 against the euro around 2100 GMT, down from $1.1127 at the same time Thursday. The greenback also weakened against the Japanese currency, fetching 119.00 yen, down from 120.01.
The dollar s weakness came amid losses on major US, European and Asian equities markets as the murky US jobs data added to worries about China s economic slowdown and financial turmoil.
"There are two opposing forces right now. The broader market sentiment shows lower equities and that tends to be supportive of the euro in funding currency dynamics," said Eric Viloria, currency strategist for Wells Fargo Securities.
"At the same time, the unemployment report was pretty decent overall and still leaves September as an option for the Federal Reserve to begin its interest rate liftoff, and that has a supportive effect on the dollar," he said.
