The U.S. dollar inched away from its 15-month lows on Wednesday’s session as it pauses from a sell-off. Investors are currently bracing themselves for the U.S. jobs data that is set to be released this Friday.
The performance of the dollar has been highly influenced by on-going geopolitical uncertainties surrounding Washington and the weak economic figures in the United States. This includes the slow inflation which adds up the concerns regarding the pace of Fed’s policy tightening.
Barclays’ senior strategist Shin Kadota said that the greenback was already sluggish, especially against euro and it came to the point where participants started buying back the currency before the release of U.S. jobs data this Friday.
The index which measures the value of the greenback against its major opposing currencies, the U.S. dollar index, was marginally higher by 93.090 after its lowest bounce since May 2016 of 92.777.
The European currency added as much as 12 percent versus the U.S. dollar so far this 2017. On the previous session, the common currency remained stable at $1.1806 after being away from its peak of $1.1846. Euro has been fueled by projections that the European Central Bank (ECB) would start tightening its monetary policy gradually. This was one of the factors that add up to the uncertainties that made the common currency stronger against the greenback.
The Japanese yen, however, was weaker against the dollar by 0.15 percent at 110.535 yen. Sumitomo Mitsui Trust’s senior market economist said the yen is providing support to the dollar with U.S. stocks strong performance.