"At the end of the day, there's nothing we can do but wait and see how the spread of Delta will or will not change the Federal Reserve's policy stance," said Kazushige Kaida, head of FX sales at State Street Bank's Tokyo branch.
By Kevin Buckland TOKYO, Aug 9 (Reuters) - The dollar climbed against major peers on Monday, reaching a four-month high versus the euro, as traders positioned for an earlier tapering of Federal Reserve stimulus.
The greenback strengthened as far as $1.1742 to the single currency, extending a 0.6% pop from Friday, invest when a strong U.S. yields continue to tick higher. currency against six rivals, rose to a two-week top 92.915. Singapore markets were also closed. payrolls were a game-changer," Chris Weston, head of research at brokerage Pepperstone in Melbourne, wrote in a client note.
The dollar index is eyeing a close above 93, while the currency could head for $1.1704 per euro, Weston wrote, adding that it could climb further versus the yen too should U.S. jobs report stoked bets that a reduction in asset purchases could start this year and higher interest rates could follow as soon as 2022.
The dollar index, which tracks the U.S. Friday's non-farm payroll report showed jobs increased by 943,000 in July compared with the 870,000 forecast by economists in a Reuters poll.
Numbers for May and June were also revised up. The dollar also hit an almost two-week high of 110.37 yen . The Fed has made the labor market recovery a condition of tighter monetary policy, and most officials back the view that a jump in inflation will prove transitory, though there is debate over how prolonged it could be.
Traders will be keenly watching a U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar $1.1742 $1.1763 -0.17% -3.89% +1.1769 +1.1742 Dollar/Yen 110.2900 110.2100 +0.05% +6.75% +110.3050 +110.2600 Euro/Yen Dollar/Swiss 0.9161 0.9152 +0.10% +3.54% +0.9162 +0.9153 Sterling/Dollar 1.3855 1.3875 -0.13% +1.42% +1.3874 +1.3857 Dollar/Canadian 1.2583 1.2552 +0.25% -1.19% +1.2583 +1.2558 Aussie/Dollar 0.7328 0.7355 -0.35% -4.73% +0.7357 +0.7329 NZ 0.6985 0.7011 -0.34% -2.70% +0.7007 +0.6980 Dollar/Dollar All spots Tokyo spots Europe spots Volatilities Tokyo Forex market info from BOJ (Reporting by Kevin Buckland Editing by Shri Navaratnam)
The dollar rallied against its Australian and New Zealand counterparts on Monday, jumping 0.3% to as high as $0.7330 per Aussie and up 0.4% to $0.6980 per kiwi.
======================================================== Currency bid prices at 0017 GMT Description RIC Last U.S. The benchmark 10-year Treasury yield jumped 8 basis points on Friday to a two-week high of 1.3053%.
There was no trading in Tokyo on Monday with Japan shut for a national holiday. consumer price report on Wednesday. Last week, Fed Vice Chair Richard Clarida suggested that conditions for hiking interest rates might be met as soon as late 2022.
Shares in the group fell by as much as 6.1% to the bottom of the DAX, hitting their lowest since Dec.
21, 2020, after second-quarter adjusted EBITDA at Bayer's Crop Science division declined by more than a quarter.
"That makes it more likely that inflation will ease back to the 2% target by itself and less likely that the Fed will have to hike interest rates more aggressively than so far assumed," currency analysts at Commerzbank said in a note, adding producer price data due later Thursday was likely to confirm the trend.
Atlanta Federal Reserve Bank President Raphael Bostic, speaking after the jobs data, said he was eyeing the fourth quarter for the start of a bond-purchases taper, but was open to an earlier move.
Boston Federal Reserve Bank President Eric Rosengren said the Fed should announce September that it will reduce asset purchases in the autumn.
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The dollar index, which measures the greenback against a basket of six rivals, was little changed at 92.890, following a 0.19% decline from Wednesday, when it rose as high as 93.195, a level not seen since April 1. By Kevin Buckland TOKYO, Aug 12 (Reuters) - The dollar held near a four-month peak against major peers on Thursday after retreating overnight as a cooling in consumer inflation tempered bets for an earlier tightening of U.S.
monetary policy. However, many analysts still expect the Fed to announce a tapering of stimulus this year, potentially as soon as next month. Kansas City Fed President Esther George said on Wednesday the standard for reducing the bond-buying programme may have already been met by the current spike in inflation, recent labour market improvements and the expectation for continued strong demand.
Dallas Fed President Robert Kaplan, in an interview with CNBC, said the U.S. central bank should announce its timeline for reducing massive bond purchases next month and start tapering them in October. "The general consensus emanating from FOMC members currently is that the time to taper asset purchases is nearing," Commonwealth Bank of Australia strategist Kim Mundy wrote in a research note.
"Growing expectations for a near-term taper can support USD." Mundy expects a taper announcement in September if jobs data for August remains strong. Elsewhere, bitcoin traded around $45,800 after touching $46,787.60 on Wednesday, the highest since mid-May. The consumer price index rose 0.5% last month, in line with economist estimates but down from the 0.9% advance in June.
Inflation eased in some areas where Fed policymakers had indicated price pressures would likely prove temporary, such as used cars. The Fed has made a labour market recovery a condition for phasing out its asset purchase programme and raising interest rates, while generally viewing current inflationary pressures as transitory, although there has been debate about how long those pressures could last.
The Fed is "likely to take some comfort" from the CPI report, David de Garis, an analyst at National Australia Bank, wrote in a note to clients. Smaller rival ether stood around $3,200 after advancing to $3,279.99 overnight for the first time since May 19.
======================================================== Currency bid prices at 0021 GMT Description RIC Last U.S. "For now, the focus returns more fully to the rate of improvement in the state of the labour market." The euro was little changed at $1.1740 after retreating from a four-month low of $1.1706 on Wednesday, which brought it just two tenths of a cent from the weakest level since early November.
The dollar eased 0.07% to 110.355 yen, continuing to pull back from a five-week high of 110.80 reached overnight. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar $1.1742 $1.1740 +0.03% -3.88% +1.1745 +1.1740 Dollar/Yen 110.3600 110.4000 +0.00% +6.88% +110.4400 +0.0000 Euro/Yen Dollar/Swiss 0.9216 0.9218 -0.01% +4.18% +0.9218 +0.9215 Sterling/Dollar 1.3867 1.3866 +0.00% +1.49% +1.3870 +1.3866 Dollar/Canadian 1.2510 1.2503 +0.04% -1.78% +1.2512 +1.2503 Aussie/Dollar 0.7370 0.7373 -0.03% -4.19% +0.7376 +0.7371 NZ 0.7044 0.7040 +0.09% -1.88% +0.7046 +0.7040 Dollar/Dollar All spots Tokyo spots Europe spots Volatilities Tokyo Forex market info from BOJ (Reporting by Kevin Buckland; Editing by Sam Holmes)
In an interview with Reuters, Richmond Fed President Thomas Barkin said it may take a few months more for the U.S.
job market to recover enough that the Fed can start to reduce its support for the economy.