He global dollar fell again, even though the yen hit a new record low, dragged down by weak economic data from USA and the effects of pessimistic comments issued from the Federal Reserve (Fed).
He dollar index —which measures the performance of the greenback in relation to a basket of six other currencies of international relevance— fell 0.2%, to 105.41 units, after it was announced that the private sector created 10,000 fewer jobs than expected in June.
The greenback fell after it became known that the private payrolls U.S. jobless claims rose slightly less than expected in June and initial claims for unemployment benefits rose unemployment, both data consistent with the slowdown of the labor market.
There was also a report indicating that the sector services U.S. exports contracted last month and another showed factory orders fell.
Although the national jobs report points to a slowdown in the economy that would support the long-awaited rate cut for September, the comments of the president of the Fed, Jerome Powellremained in an exceptionally pessimistic tone that discouraged the workers.
In parallel, the euro hit a three-week high and gained 0.3% to $1.0781, while the pound sterling also gained ground.
The fall of the yen
These two coins helped to counteract the effects of the fall of the yenwhich fell 0.3% to 161.96 per dollar for the first time since December 1986. It also hit a record low of 173.80 against the euro.
This week, Japanese authorities have remained silent on the yen and the finance minister, Shunichi Suzuki, He only said on Tuesday that his movements are being monitored, but refrained from repeating the usual warning that the ministry is prepared to act.
“Right now, the currency market is challenging the Japanese authorities to do something. The feeling is that the markets will continue to push the dollar/yen higher until the Japanese authorities respond,” he told Reuters. Michelle Metcalfe, of State Street Global Advisors.
Source: Ambito
