Green­back weak­ens af­ter US jobs data re­lease

The China Post - - WORLD BUSINESS -

The U.S. dollar faced sell­ing pres­sure against ma­jor cur­ren­cies in Asia on Mon­day af­ter dis­ap­point­ing U.S. jobs data cast a pall over the out­look for higher in­ter­est rates.

The green­back fell to 119.05 yen in Tokyo af­ter­noon trade from 119.62 yen on Fri­day, while the euro rose to US$1.0977 and 130.70 yen from US$1.0879 and 130.16 yen.

Global trad­ing was thin, with many mar­kets shut for public hol­i­days.

The dollar’s drop came af­ter the re­lease Fri­day of closely watched U.S. pay­rolls data, which showed em­ploy­ers sharply cut back on hir- ing in March.

The U.S. La­bor Depart­ment on Fri­day said the world’s lead­ing econ­omy gen­er­ated 126,000 net new jobs in March, half of what was ex­pected and the worst month since De­cem­ber 2013.

“Non-farm pay­rolls fell short of mar­ket ex­pec­ta­tions by a long way,” Toshiya Ya­mauchi, a se­nior an­a­lyst in Tokyo at Ueda Har­low Ltd., a mar­gin-trad­ing-ser­vices provider, wrote in a note to clients.

“Sen­ti­ment for dollar sell­ing is set to con­tinue,” he said.

The depart­ment also trimmed 69,000 from the two pre­vi­ous months’ fig­ures, dim­ming the pic- ture for growth af­ter a year that av­er­aged 287,000 new hires a month across the coun­try.

“It’s pretty shock­ing,” said John Vail, the chief global strate­gist at Nikko As­set Man­age­ment.

“This re­port ob­vi­ously does push out ex­pec­ta­tions for a Fed hike to some de­gree, although we all know that the data can change very rapidly.”

The dollar was lower against other Asia-Pa­cific cur­ren­cies.

It sank to SG$ 1.3527 from SG$1.3577 on Fri­day, to 1,083.91 South Korean won from 1,093.88 won and to 44.37 Philip­pine pe­sos from 44.45 pe­sos.

The dollar also de­clined to 12,949 In­done­sian ru­piah from 13,024 ru­piah, to 32.44 Thai baht from 32.47 baht and to 62.15 In­dian ru­pees from 62.50 ru­pees.

The Aus­tralian dollar fetched 76.24 U.S. cents against 75.96 cents, while the Chi­nese yuan bought 19.22 yen com­pared with 19.31 yen.

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