* Graphic: FX rates around the world tmsnrt.rs/2RBWI5E
Kevin Buckland contributed to this article.
(Reuters) – TOKYO, July 1 (Reuters) – On Thursday, the dollar rose to a new 15-month high against the yen and stayed at multi-month highs against other major counterparts, ahead of a key U.S. jobs report that would provide hints as to when the Federal Reserve will begin to reduce stimulus.
The dollar climbed to 111.165 yen for the first time since March 26, 2020, before dropping back to 111.055 yen.
The dollar index, which compares the greenback to six other currencies, remained slightly below a two-and-a-half-month high of 92.451 achieved on Wednesday, nudging up to 92.402.
The Fed’s surprise hawkish move in the middle of that month, when officials signaled two interest rate hikes by the end of 2023, propelled the index to its highest month since November 2016.
Traders are hoping for confirmation of that outlook in Friday’s nonfarm payrolls report, with economists polled by Reuters anticipating a gain of 700,000 jobs last month, up from 559,000 in May, and an unemployment rate of 5.7 percent, down from 5.8 percent the previous month.
The dollar gained more ground on Wednesday after data indicated that private payrolls in the United States expanded by 692,000 jobs in June, more than predicted.
In a letter to clients, Chris Weston, head of research at broker Pepperstone in Melbourne, said, “I view the balance of risk skewed to an above-consensus print” for nonfarm payrolls. “A payrolls increase of more than 800,000 people might push up US bond yields, putting more pressure on the dollar. “If the euro breaks convincingly below current levels against the dollar,” he added, “this might be a magnet to attract USD flow,” adding that “the JPY appears globally weak.” ”
The euro fell to $1.1851 after falling to $1.1845 for the first time since April 6 on Wednesday.
In Asia, the benchmark 10-year US Treasury yield continued to fall, falling to 1.4630 percent after a three-day drop.
The spread of the highly contagious Delta version of COVID-19, which is jeopardizing the global reopening narrative, has boosted safe-haven assets including Treasuries, the dollar, and the yen.
COVID-19 outbreaks are causing limitations in Indonesia, Malaysia, Thailand, and Australia, and Spain and Portugal have issued restrictions for unvaccinated British tourists.
The Australian dollar, which is used as a proxy for risk appetite, fell 0.2 percent to $0.7485, approaching a six-month low of $0.7478 set last week.
Sterling fell 0.1 percent to $1.3811, approaching a two-month low of $1.37865.
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Currency bid prices at 0139 GMT Description RIC Last U.S. Close % Change YTD % High Bid Lowest Bidder
Changes Before
Session
Euro/Dollar $1.1852 $1.1855 -0.03% -3.00% +1.1861 +1.1848 +1.1861 +1.1848 +1.1861 +1.1848 +1.1861 +1.1848 +1.1861
Euro/Yen EURJPY=EB 131.59 131.73 -0.11 percent +3.68 percent +131.7700 +131.5800 S> Dollar/Yen 111.0400 111.0800 -0.04 percent +7.50 percent +111.1600 +111.0400 Dollar/Yen 111.0400 111.0800 -0.04 percent +7.50 percent +111.1600 +111.0400 Dollar/Yen 111.0400 111.0800 -0.04 percent +7.50 percent +111.1
Dollar/Swiss +0.08 percent +4.62 percent +0.9259 +0.9251 0.9256 0.9249 +0.08 percent +4.62 percent +0.9259 +0.9251
1.3814 1.3830 -0.12 percent +1.11 percent +1.3833 +1.3812 percent Sterling/Dollar 1.3814 1.3830 -0.12 percent +1.11 percent +1.3833 +1.3812 percent Sterling/Dollar 1.3814 1.38
Dollar/Canadian 1.2402 1.2397 +0.06% -2.59 percent +1.2409 +1.2391 +1.2409 +1.2391 +1.2409 +1.2391 +1.2409 +1.2391 +1.
NZ 0.6988 0.6986 -0.01 percent -2.72 percent +0.6996 +0.6982 Dollar/Dollar 0.7488 0.7500 -0.16 percent -2.66 percent +0.7502 +0.7485 Aussie/Dollar 0.7488 0.7500 -0.16 percent -2.66 percent +0.7502 +0.7485 NZ 0.6988 0.6986 -0.01 percent -2.72 percent +0.6996 +0.6982 Dollar/ Each and every location
Tokyo is located in Europe.
Volatilities
BOJ provides information on the Tokyo foreign exchange market.
(Kevin Buckland contributed reporting, and Ana Nicolaci da Costa edited the piece.)/n
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