Despite Friday’s disappointing U.S. jobs numbers, the dollar will continue to rein supreme assuming the Federal Reserve looks on course to raise rates before year-end, analysts say.
“We saw this last year, when U.S. first quarter gross domestic product (GDP) disappointed,” DBS senior currency strategist Philip Wee told CNBC. “So, we had corrections in the dollar and the Dow (Jones Industrial Average), but the dollar went up very strongly in the second-half of (2014)”.
Weaker-than-expected U.S. jobs data on Friday put a pause on the dollar’s seemingly unstoppable rally. Non-farm payroll came in at 126,000 in March, sharply below expectations for a 245,000 increase in a Reuters poll and marking the lowest reading since December 2013. The data saw the U.S. dollar index drop 0.78 percent to 96.76 on Friday.