• Wealth and poverty

    True riches would be to create a safe and satisfied community for all South Africans.

  • SABC shenanigans

    SA has already embarked on a slippery slope to autocracy, warns Terry Bell in Inside Labour.

  • Zim tastes people power

    Protests in Zimbabwe are forcing Mugabe to face anti-government sentiment, says Memory Mataranyika.

All data is delayed
See More

Dollar under pressure as US wages dip

Mar 06 2016 11:04

New York - The dollar fell against the euro Friday after a mixed US jobs report showed a dip in wages, clouding the outlook for a Federal Reserve interest rate hike this month.

Though the US economy added a much better-than-expected 242 000 jobs last month and the unemployment rate held at 4.9%, an eight-year low, there was a drop in the average wage and the average hours worked, suggesting remaining slack in the labor market.

"Unfortunately for the US dollar, the mixed nature of the report - especially the wage internals - have prevented a significant rebound" in the US Dollar Index, said Christopher Vecchio at DailyFX in a client note.

While the dollar index "initially reacted positively to the data, the seemingly strong report rang hollow," he said.

The greenback fell 0.5% to $1.1008 per euro and 0.4% against the pound at $1.4233. It edged up to 113.79 yen.

Analysts said they expect the Fed will hold off from raising interest rates at its March 15-16 policy meeting, given signs of slowing US economic growth and the global slowdown.

"Most Federal Reserve officials have their minds made about keeping interest rates unchanged in March and today's jobs report reinforced the need for patience," said Kathy Lien of BK Asset Management.

Lien said there was enough improvement in the jobs report for the Fed to keep a hawkish bias "which should limit the dollar's decline in the coming week especially since there are no major US economic reports on the calendar."

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.



Company Snapshot

We're talking about:


Saving can make a lot of things possible, but we all know how hard it is to save. This special Savings Issue will help you get focused.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Sarb's decision to keep the repo rate unchanged is:

Previous results · Suggest a vote