The U.S. dollar took an early dip on Monday as Asian investors caught up with a benign payrolls report and the subsequent slide in Treasury yields, though turnover was light with Tokyo on holiday.
Share markets were opening lower following a soft finish on Wall Street though sentiment was supported by speculation the Federal Reserve would be patient in tightening policy given the weakness of wages apparent in the jobs numbers. Wages fell by the most since the series began in 2006 even as payrolls increased by a brisk 252,000.
Treasury yields fell sharply on the news as the market pushed out the likely timing of the first rate hike, which in turn undercut the dollar. The greenback dipped as far as 118.22 yen first thing on Monday, reaching a low last seen on Jan. 6, before steadying at 118.30. The euro edged up to $1.1861 and away from last week’s nine-year trough of $1.1754.
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