The dollar touched lowest level in almost a month versus the yen as investors weighed whether the U.S. economic recovery is strong enough for the Federal Reserve to reduce monetary stimulus that tends to weaken the greenback.
The Dollar Index dropped toward an almost one-month low yesterday after figures from ADP Research Institute showed U.S. companies hired fewer workers than economists projected. Data in the coming days may show the number of applications for unemployment benefits fell and payrolls increased. Australia’s dollar slid to a more than one-year low after global stocks fell and ahead of data forecast to show the nation’s trade surplus shrank. The European Central Bank sets policy today.
“The ADP report raised concerns about Friday’s jobs data,” said Yuki Sakasai, a foreign-exchange strategist at Barclays Plc in New York. “The dollar was sold off as Treasury yields fell.”
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