(Adds new comment, updates prices) * Dollar drops to four-week low vs yen * Dollar sinks to 2-1/2-year trough vs Swiss franc * Focus on U.S. consumer inflation data on Wednesday By Gertrude Chavez-Dreyfuss NEW YORK, July 11 (Reuters) - The dollar dropped to a two-month low against a major currency index on Tuesday, after Federal Reserve officials signalled that the central bank is near the end of its tightening cycle, while sterling hit a 15-month high after pay growth exceeded expectations. Against the yen, the dollar fell to a four-week trough of 140.17. It last traded down 0.7% at 140.335 yen. The U.S. currency also plunged to its lowest in two-and-a-half years versus the Swiss franc, and was last at 0.8799 francs, down 0.6%. Several Fed officials said on Monday the central bank would likely need to raise interest rates further to bring down inflation but the end to its current monetary policy tightening cycle was getting close. The comments knocked the greenback to a two-month low of 101.66 against a basket of currencies, as traders pared back their expectations about how much further U.S. rates may have to rise. The dollar index was last down 0.2% at 101.69. "Friday's NFP (nonfarm payrolls) report revealed, for the first time since COVID, potential cracks in the U.S. labor market, hinting that the Fed may have to settle on just a single rate hike in the second half of the year," said Matt Weller, global head of research at Forex.com and City Index. The June non-farm payrolls report showed the fewest job gains in 2-1/2 years. "Meanwhile, this morning's strong UK wage growth data and the ongoing short squeeze in the Japanese yen are driving two of the greenback's biggest rivals higher as traders anxiously await tomorrow's U.S. CPI report," Weller added. Expectations are for core U.S. consumer prices to have risen 5% on an annual basis in June. The CPI data should provide more clarity on the Fed's progress in its fight against stubbornly high inflation. "Market participants should remember that U.S. data releases still have the capacity to shock: if the core or 'supercore' inflation measures surprise to the upside, front-end yields could leg higher once again, and the dollar might stage a surprising rebound," said Karl Schamotta, chief market strategist at Corpay in Toronto. EUROPEAN CURRENCIES STRENGTHEN Sterling hit a near 15-month high of $1.2934 after British wage growth hit a joint record high, heaping pressure on the Bank of England to tighten policy further to bring inflation under control. It was last up 0.5% at $1.2920. The pound has been rallying on a stronger economy and aggressive repricing of expectations for tighter BoE policy, analysts said. The euro rose to two-month peaks of $1.1027, and last changed hands at $1.1006, up slightly in the day. Other European currencies were also strong, with the Norwegian crown hitting a near three-month high and the Swedish crown at a two-week peak against the dollar. In Japan, the yen has risen more than 3% from a seven-month low touched last month, when it weakened past the closely watched 145 per dollar level that put traders on high alert for possible intervention from Japanese authorities. Elsewhere, the Australian dollar was flat at US$0.6674, while the New Zealand currency was down 0.4% at US$0.6191 ahead of the Reserve Bank of New Zealand policy decision on Wednesday. ======================================================== Currency bid prices at 1:16PM (1716 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index 101.7000 101.9200 -0.21% -1.730% +101.9700 +101.6600 Euro/Dollar $1.1003 $1.1001 +0.04% +2.71% +$1.1027 +$1.0977 Dollar/Yen 140.3850 141.3150 -0.66% +7.07% +141.4550 +140.1700 Euro/Yen 154.48 155.45 -0.62% +10.11% +155.6700 +154.1900 Dollar/Swiss 0.8799 0.8854 -0.62% -4.84% +0.8856 +0.8798 Sterling/Dollar $1.2919 $1.2860 +0.46% +6.83% +$1.2934 +$1.2858 Dollar/Canadian 1.3252 1.3280 -0.23% -2.22% +1.3289 +1.3246 Aussie/Dollar $0.6671 $0.6677 -0.06% -2.11% +$0.6695 +$0.6652 Euro/Swiss 0.9683 0.9737 -0.55% -2.14% +0.9753 +0.9678 Euro/Sterling 0.8516 0.8553 -0.43% -3.71% +0.8562 +0.8505 NZ $0.6188 $0.6212 -0.36% -2.52% +$0.6224 +$0.6168 Dollar/Dollar Dollar/Norway 10.3530 10.4770 -1.16% +5.51% +10.4790 +10.3550 Euro/Norway 11.3928 11.5250 -1.15% +8.64% +11.5385 +11.3906 Dollar/Sweden 10.6709 10.7481 -0.79% +2.53% +10.7604 +10.6693 Euro/Sweden 11.7318 11.8255 -0.79% +5.22% +11.8415 +11.7266 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Samuel Indyk in London and Rae Wee in Singapore; Editing by Chizu Nomiyama, Louise Heavens and Andrea Ricci)
Delayed 21:14:32 2024-06-05 EDT | 5-day change | 1st Jan Change | ||
0.6675 USD | +0.29% | +0.69% | -1.98% |
06-05 | Materials Gain After Weak Jobs Data - Materials Roundup | DJ |
06-05 | TREASURIES-Yields drop as traders bets on softer jobs growth | RE |
Stocks mentioned in the article
Price
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Change
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5d. change
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Capi.
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199.1 JPY | -0.19% | -0.37% | - | ||
169.3 JPY | -0.15% | -0.44% | - | ||
155.5 JPY | -0.28% | -0.96% | - | ||
113.7 JPY | -0.17% | -0.90% | - | ||
103.8 JPY | +0.01% | -0.30% | - | ||
96.54 JPY | -0.06% | +0.57% | - | ||
13.27 SEK | -0.11% | -1.52% | - | ||
13 CHF | -0.10% | -0.54% | - | ||
11.4 CHF | -0.22% | -1.33% | - | ||
11.29 SEK | -0.07% | -1.57% | - | ||
10.37 SEK | -0.21% | -2.09% | - | ||
1.918 AUD | -0.21% | -0.09% | - | ||
1.867 JPY | -0.21% | -0.84% | - | ||
1.631 AUD | -0.17% | -0.15% | - | ||
1.498 AUD | -0.28% | -0.68% | - | ||
1.28 USD | +0.09% | +0.60% | - | ||
1.176 EUR | -0.05% | +0.09% | - | ||
1.14 CHF | -0.15% | -0.83% | - | ||
1.096 AUD | -0.17% | -0.61% | - | ||
1.089 USD | +0.13% | +0.53% | - | ||
1.075 NZD | +0.08% | -0.84% | - | ||
0.9817 SEK | -0.07% | -2.13% | - | ||
0.9696 CHF | -0.11% | -0.90% | - | ||
0.9185 EUR | -0.13% | -0.53% | - | ||
0.9128 CAD | +0.19% | +0.63% | - | ||
0.8905 CHF | -0.24% | -1.41% | - | ||
0.8503 GBX | +0.04% | -0.07% | - | ||
0.781 GBX | -0.09% | -0.59% | - | ||
0.7307 USD | +0.11% | 0.00% | - | ||
0.6717 EUR | -0.02% | -0.44% | - | ||
0.6675 USD | +0.30% | +0.69% | - | ||
0.6616 CHF | -0.11% | -1.11% | - | ||
0.6512 CHF | -0.12% | -1.35% | - | ||
0.6209 USD | +0.21% | +1.54% | - | ||
0.6129 EUR | +0.15% | +0.15% | - | ||
0.5944 CHF | +0.06% | -0.75% | - | ||
0.5727 CHF | +0.03% | -0.49% | - | ||
0.5711 GBX | +0.02% | -0.52% | - | ||
0.5529 CHF | -0.03% | +0.09% | - | ||
0.5211 GBX | +0.19% | +0.08% | - | ||
0.1231 CHF | -0.07% | -1.44% | - | ||
0.0859 CHF | -0.07% | +0.82% | - | ||
0.018 AUD | -0.27% | -0.55% | - | ||
0.012 USD | -0.02% | 0.00% | - | ||
0.011 EUR | -0.11% | -0.90% | - | ||
0.0107 CHF | -0.18% | -0.93% | - | ||
0.01 CHF | -0.07% | 0.00% | - | ||
0.009369 GBX | -0.11% | 0.00% | - | ||
- PTS | -.--% | +1.02% | - | ||
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