The Bloomberg U.S. Dollar Index remained lower following a decline at the end of last week after China’s services industry expanded at a faster pace, sapping demand for the greenback as a haven asset.
The dollar was within 0.5 percent of a six-week low against the euro after a U.S. government report on Aug. 2 showed employers added fewer-than-estimated workers in July, damping speculation the Federal Reserve will slow the pace of bond purchases anytime soon. New Zealand’s dollar tumbled against all of its major peers after China halted imports of milk powder from Fonterra Cooperative Group Ltd.
“You would have thought the U.S. dollar will come off a little bit,” said Tim Kelleher, the head of institutional foreign-exchange sales in Auckland at ASB Institutional. “The jobs number was a little bit disappointing for the hawks.”
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