Green­back ticks up af­ter fall­ing on US wage re­port

The China Post - - BUSINESS INDEX & -

The Amer­i­can dol­lar rose against the euro and yen on Mon­day af­ter fall­ing in U.S. trade ow­ing to a weak re­port on work­ers’ pay that reignited ques­tions about the timeline for an in­ter­est rate hike.

In Tokyo af­ter­noon trade, the green­back fetched 124.05 yen, edg­ing up from 123.91 yen in New York late Fri­day.

The euro bought US$1.0976 and 136.15 yen against US$1.0984 and 136.10 yen in U.S. trade.

On Fri­day, the Amer­i­can dol­lar fell against other ma­jor cur­ren- cies as the U.S. re­port showed wages and salaries rose just 0.2 per­cent in the sec­ond quar­ter, de­cel­er­at­ing from 0.7 per­cent growth in the first.

The dis­ap­point­ing data came af­ter con­fi­dence rose on a re­port from the U.S. Com­merce Depart­ment Thurs­day that said the world’s top econ­omy ex­panded at an an­nual rate of 2.3 per­cent in the April-June pe­riod, the strong­est growth since the third quar­ter of 2014.

And while the fig­ure was a lit­tle be­low ex­pec­ta­tions, the depart­ment also re­vised up its es­ti­mate on the first quar­ter of the year — which was hit by se­vere win­ter weather — to growth of 0.6 per­cent, from a 0.2 per­cent con­trac­tion.

Cur­rency traders are keep­ing a close eye on U.S. data as they try to gauge the timeline for a Fed­eral Re­serve rate hike — a plus for the U.S. unit — which is widely ex­pected in Septem­ber or De­cem­ber.

Sen­ti­ment on Mon­day in Asia was bruised, how­ever, af­ter a key gauge of Chi­nese man­u­fac­tur­ing ac­tiv­ity plunged to a twoyear low in July, the latest data sug­gest­ing the world’s sec­ond largest econ­omy faces chal­lenges.

The dol­lar was mixed against other Asia-Pa­cific cur­ren­cies.

It rose to SG$1.3747 from SG$1.3727 on Fri­day, to 45.70 Philip­pine pe­sos from 45.65 pe­sos and to 13,502 In­done­sian ru­piah from 13,487 ru­piah.

The green­back weak­ened to 1,165.85 South Korean won from 1,168.24 won, to 35.03 Thai baht from 35.14 baht and to 63.95 In­dian ru­pees from 64.03 ru­pees.

The Aus­tralian dol­lar slipped to 72.97 U.S. cents from 73.01 cents, while the Chi­nese yuan fetched 19.98 yen against 19.94 yen.

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