Dollar slumps as investors await U.S. nonfarm payrolls data

The surge of dollar

The U.S. dollar slumped on Friday’s session in reaction to the unenthusiastic released economic figures in the United States. These heightened concerns if U.S. Federal Reserve will incite another interest rate hike this 2017, even though investors are currently cautious on the upcoming jobs data in the country.

Consumer spending in the United States was marginally up than estimations for the month of July, according to data’s released on the previous day, but annual inflation has been stagnant since 2015. It is also worth mentioning that there has been a minimal increase in fresh applications for jobless benefits on the back of a tightening employment market last week.

According to the calculations of 93 economists from Reuters, the expected U.S. nonfarm payrolls this day showed employers gained more than 180,000 jobs last month. Daiwa Securities’ chief foreign-exchange strategist Mitsuo Imaizumi suggested that the released employment data would not affect the Federal Reserve.

The index which measures that value of the U.S. currency against its major opposing currencies, the dollar index, fell as low as 0.1 percent to 92.619 as it was poised to drop by 0.2 percent for the week. The index stayed above a 2-1/2-year low of 91.621 this week which was due to the turmoil’s surrounding the Korean Peninsula.

On the dollar’s performance against the save-haven currency Japanese yen, the greenback rose about 0.1 percent 110.07 yen. Treasury secretary Steven Mnuchin said on CNBC that the trading in the United States will benefit from a softer dollar.

 

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