The U.S. dollar advanced against other major currencies on Monday as signs of rising wage inflation in Friday’s U.S. jobs report could keep the Federal Reserve on course for dollar-supportive interest-rate tightening later this year.
The greenback was broadly firmer in response. One dollar USDJPY, +1.24% bought ¥108.20 up 1% from ¥107.12 late Friday in New York. Euro/dollar EURUSD, -0.1140% traded at $1.1377, compared with $1.1406 at the end of last week. The British pound GBPUSD, -0.0277% was at $1.4446, basically unchanged from late Friday.
The U.S. Dollar Index DXY, +0.15% , which measures the buck against about a half-dozen other currencies, traded up 0.1% at 94.00.
In Friday’s report, U.S. nonfarm payrolls rose by a seasonally adjusted 160,000 jobs in April, undershooting a 205,000 increase expected, but average hourly earnings of private-sector workers advanced 2.5% in April from a year earlier.
Other labor market signs give dollar bulls hope. In a speech in London Monday, Fed member Charles Evans also pointed to rising labor participation.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.