Sunday, 14th July 2024

Dollar firm ahead of jobs report

Published:  5 Jun at 9 AM
The US dollar has recovered some ground against the yen after falling to its lowest level in four weeks against the Japanese currency on Monday. The greenback was given additional support following reports that the Japanese government will push public pension funds to invest in overseas assets and equities.

The dollar gained 0.4 per cent to settle at 99.94 yen and analysts expect the greenback to hover around the 100 mark even though the dollar fell to 98.86 earlier this week following data indicating that factory activity in the US during May was at its lowest level since the middle of 2009.

The dollar fell against a basket of currencies on Monday and weak manufacturing data means it is now less likely that the Federal Reserve will end its policy of financial stimulus any time soon.

Analysts are now concentrating of US job figures due to be released on Friday. If the data shows only slim growth in May, then the Fed is likely to stick to its bond-buying programme. The central bank has said it will not ease back on quantitative easing until the job market shows real signs of improvement.

The euro gained 0.1 per cent to settle at $1.3084 ahead of a European Central Bank meeting where a possible interest rate cut will be discussed.