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At a bank in Westminster, Colorado, a banker counts US dollars. Wednesday, November 3, 2009. Rick Wilking/REUTERS/File Photo Reuters, SINGAPORE, July 5 – The dollar took a respite on Monday after recent advances were slowed by details of last week’s US jobs data, which allayed concerns about the timetable of interest rate hikes in the United States. While the headline job creation statistic for June outperformed expectations, unemployment rose, labor participation remained unchanged, and the rate of hourly earnings growth slowed, implying that rate hikes may be further away than markets have assumed. In the aftermath of the report on Friday, the greenback fell 0.7 percent and 0.9 percent against the risk-sensitive Australian and New Zealand dollars, respectively, before stabilizing on Monday. After slipping just below 111 yen following the jobs news, the dollar clawed its way back marginally against the yen, recovering 0.14 percent to 111.15 yen early in the Asia session. The euro remained stable at $1.1859, up from a three-month low of $1.1807 on Friday. “The data was mixed enough to keep the Fed from announcing tapering anytime soon,” said Westpac analyst Imre Speizer over the phone from Christchurch, referring to the US Federal Reserve, which sets the benchmark policy rate in the United States. “I believe the market anticipated a signal from you at (the)Jackson Hole (conference) in August. According to this story, that may be a little premature “he stated The value of the pound remained unchanged at $1.3820. The dollar index was unchanged at 92.334, after dropping 0.3 percent to that level on Friday. It’s risen nearly 2% in three weeks after the Fed sparked a rally in the greenback in June – and a reshuffling of bond and currency positions – with a shockingly aggressive forecast for rate hikes starting in 2023. The minutes from that June meeting are set to be released on Wednesday, and they may reveal further information about policymakers’ thoughts. “(The minutes) will almost certainly confirm the FOMC’s hawkish turn,” Commonwealth Bank of Australia analyst Joe Capurso said, referring to the Federal Open Market Committee, which sets interest rates. “More information on when the Federal Open Market Committee (FOMC) may begin to trim its asset purchases might increase US interest rates and the currency,” he said. “More evidence that the FOMC’s inflation forecast is altering is also possible. Analysts will be looking for evidence that the FOMC is losing faith in the temporary nature of the inflation increase and/or that the FOMC’s tolerance for an inflation overshoot is eroding.” A Reserve Bank of Australia (RBA) meeting on Tuesday has markets on pins and needles since the central bank has hinted at a decision on the future of its bond buying program and yield goal. The RBA isn’t likely to change its cash rate, but analysts surveyed by Reuters expect it to stick to its three-year yield target and have a flexible approach to bond purchases beyond the April 2024 bond. On Monday, cryptocurrency prices remained stable, with bitcoin trading at $34,903 and ether trading at $2,318. Markets in the United States are closed on Monday in observance of the Fourth of July holiday. Tom Westbrook contributed reporting, and Jacqueline Wong edited the piece. The Thomson Reuters Trust Principles are our standards./nRead More

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