Economy

Dollar Declines Ahead of Jobs Data

Dollar Declines Ahead of Jobs Data

The dollar fell from its highest level in four weeks against major peers on Friday as investors awaited a jobs report that could influence the trajectory of U.S. interest rates. The British pound recorded a slight increase after recovering losses incurred following the Bank of England's decision to raise interest rates by a quarter percentage point on Thursday. The yen hovered near its average trading range for the week as investors tried to gauge the Bank of Japan's acceptance of rising yields following a surprise policy change by the bank last week. Meanwhile, the risk-sensitive Australian dollar rose alongside a rebound in Chinese stock markets and U.S. stock futures.

The dollar index, which measures the performance of the U.S. currency against six major currencies, dropped 0.07% to 102.38 in early Asian trading. The index had reached its highest level since July 7 at 102.84 on Thursday but lost momentum as the monthly non-farm payrolls report's release approached. However, the dollar rose to 142.64 yen, supported by a rise in long-term U.S. Treasury yields to their highest level in about nine months at 4.198% last night. The British pound gained 0.17% to 1.27305 dollars after dipping to 1.2620 dollars on Thursday for the first time since June 30 following the Bank of England's decision, despite warnings that interest rates are likely to remain high for some time. The euro increased by 0.06% to 1.09585 dollars, and the Australian dollar rose by 0.5% to 0.65815 dollars, continuing its recovery after hitting its lowest level in two months on Thursday.

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