Publications
Partners
New York - The dollar rose versus the euro after US jobs growth exceeded forecasts, providing the Federal Reserve with added scope to raise interest rates.
Nonfarm payrolls climbed 287 000 in June compared with the 180 000 forecast by economists surveyed by Bloomberg. The jobless rate rose to 4.9% as more people entered the labour force. Wages advanced less than projected.
"This is dollar-supportive, if not wildly so," said John Hardy, head of foreign-exchange strategy at Saxo Bank in Hellerup, Denmark. "The market is cautious in putting too much into a single data point."
The US currency gained 0.3% to $1.1027 per erro as of 8:39 a.m. in New York. The Bloomberg Dollar Spot Index, which tracks the currency against 10 major peers, was little changed after falling as much as 0.2%.
A gauge of the greenback has slumped more than 3.5% this year, falling alongside the odds of a Fed rate increase.
After the central bank kept borrowing costs unchanged last month, Fed Chair Janet Yellen cited the risks from Brexit, dimming the relative allure of the US currency.
Hedge funds and money managers cut net-bullish positions on the dollar versus eight major peers last week, according to the Commodity Futures Trading Commission. Bets that the currency will rise outnumbered bearish wagers by 96 184 contracts in the week to June 28, compared with 130 989 the previous week.
The US currency is projected to strengthen to $1.08 per euro and ¥105 by the end of the year, according to Bloomberg surveys of analysts.
