U.S. Dollar Recovers as Jobs Disappointment Fades

The dollar firmed in Asia on Tuesday, having recovered almost all of its payroll-inspired losses as the euro came under renewed pressure.  The common currency last stood at $1.0936, recoiling from Monday’s $1.1036 peak. The euro has repeatedly failed to hold above $1.10 in the past few weeks, suggesting there is plenty of selling interest above that level.

Against the yen, the greenback climbed to 119.50, off a low of 118.71 set on Friday after the disappointing job growth figures sent dollar bulls packing.  A top Federal Reserve official said the timing of the first interest rate hike in nearly a decade is unclear.

New York Fed President William Dudley said for now policymakers must watch that the U.S. economy’s recent weakness does not signal a more substantial slowdown.  Yet, an industry report on the U.S. services sector showed encouraging strength in exports and employment in March, holding out hope that the economy can quickly recover from the first-quarter slowdown.