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U.S. Dollar Slips on Wages

The dollar fell for a second day after an unexpected drop in U.S. wages clouded the outlook for interest rates, and crude oil resumed declines. Billionaire Li Ka-shing’s Cheung Kong Holdings Ltd. surged in Hong Kong after a reorganization, while Shanghai shares retreated.

The greenback weakened against most major peers by 11:36 a.m. in Hong Kong as the Australian dollar added 0.5 percent and the euro gained 0.2 percent. Cheung Kong surged 14 percent, while the Shanghai Composite Index headed for its biggest three-day drop in 10 months. Standard & Poor’s 500 Index futures fluctuated. Oil slid at least 1.5 percent in New York and London. Gold advanced 0.3 percent as copper traded near the lowest since 2009. Japan’s markets are closed today.

The biggest drop in American hourly earnings since records began in 2006 is combining with sliding oil prices to damp the outlook for U.S. inflation. That’s making an early Federal Reserve interest-rate increase less likely, reducing the allure of the dollar as it trades near a 10-year high against major peers. Cheung Kong (1) offered $24 billion in stock to buy out unit Hutchison Whampoa Ltd. and will spin off its property assets.

Bloomberg [1]

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