The dollar fell a fourth day, the longest streak in nine months, as traders speculated the Federal Reserve will hold borrowing costs lower for longer amid signs of weakness in the jobs market.
The greenback declined versus most of its major counterparts as a gauge of labor-
market conditions slid and Fed Bank of New York President William C. Dudley said the pace of interest-rate increases is likely to be “shallow” once the central bank starts tightening. The euro advanced after Greece’s Finance Minister Yanis Varoufakis reiterated that the country will make a payment to the International Monetary Fund this week.
Weaker jobs data will “set the tone for the coming month, particularly for the dollar, which is likely to see some consolidation,” said Sireen Harajli, a strategist at Mizuho Bank Ltd. in New York. “In terms of monetary policy, it’s a stronger reason to be more cautious and not rush into anything.”
The dollar slipped as a Fed measure of conditions in the labor market slumped. That follows a payrolls report last week showing companies added the fewest workers since December 2013 in March.
The U.S. is moving toward raising borrowing costs for the first time since 2006. The timing of increases is still uncertain and will depend on economic developments, New York Fed President Dudley said in a speech in Newark, New Jersey yesterday.
Dollar in longest losing streak in 9 months
Categories
Business
No Comments