Share

Dollar slips on murky Fed rate hike

New York - The dollar slipped Friday under pressure from renewed uncertainty about the timing of the Federal Reserve's plan to raise ultra-low interest rates after a mixed bag of US jobs data.

The US August jobs report, the last monthly labor data before Fed policy makers meet on September 16 and 17, showed disappointing job growth but the previous two months' gains were revised higher and the unemployment rate fell more than expected to 5.1%.

Analysts said that the jobs report would support a rate hike, but that China-driven global market turmoil could stay the hand of policymakers seeking the first increase since 2006.

The dollar's weakness came amid losses on major US, European and Asian equities markets as the murky US jobs data added to worries about China's economic slowdown and financial turmoil.

"There are two opposing forces right now. The broader market sentiment shows lower equities and that tends to be supportive of the euro in funding currency dynamics," said Eric Viloria, currency strategist for Wells Fargo Securities.

"At the same time, the unemployment report was pretty decent overall and still leaves September as an option for the Federal Reserve to begin its interest rate liftoff, and that has a supportive effect on the dollar," he said.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.95
-0.3%
Rand - Pound
23.96
-0.3%
Rand - Euro
20.46
+0.0%
Rand - Aus dollar
12.36
-0.0%
Rand - Yen
0.13
-0.3%
Platinum
911.00
+1.6%
Palladium
1,012.02
+1.0%
Gold
2,214.22
+0.9%
Silver
24.75
+0.4%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.9%
Resource 10
57,251
+2.9%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders