The U.S. dollar traded 0.2 percent from an eight-month low versus the euro as investors look to employment data due today to help assess the timing for a reduction in Federal Reserve stimulus.
The greenback was poised for a monthly slide against most of its 16 major counterparts ahead of a report that may show the U.S. jobless rate remained above the central bank’s threshold to start scaling back asset purchases. The yen held losses from yesterday versus its peers as demand for safety waned before figures this week that may show consumer-price gains in Japan held near the fastest pace since 2008.
“The Fed tapering this year seems to be off the table,” said Noriaki Murao, the New York-based managing director of the marketing group at Bank of Tokyo-Mitsubishi UFJ Ltd. “A payrolls number that is slightly stronger than expectations may not spur too much dollar buying. The risk is that we would see a bigger negative reaction should the payrolls disappoint.”