Dollar rebounds against major currencies After the United States revealed that the number of non-farm payrolls rose more than expected in July.
As of 8:24 p.m. PST, the dollar was 0.38% higher to 110.16 yen, while the euro was down 0.04% to 129.78 and 0.42% to $1.178. The index measures the dollar’s movements against six major currencies in a basket of currencies, up 0.40% to 92.61.
Investors expected strong employment numbers to support the Federal Reserve (Fed) to begin cutting its quantitative easing (QE) bond program and raising interest rates. This will be a positive factor for the dollar.
The US Department of Labor reported that Non-farm payrolls rose 943,000 in July. That was higher than analyst estimates of 845,000 jobs from 938,000 in June.
The unemployment rate fell to 5.4 percent in July, below analysts’ forecast of 5.7 percent after hitting 5.9 percent in June.
The US Department of Labor has also adjusted the number of jobs in May. It increased to 614,000 from previously reported an increase of 583,000 and adjusted the number of jobs in June. The increase rose to 938,000 from the previously reported 850,000 increase.
The US Department of Labor said in July The private sector added 703,000 jobs, while the government added 240,000.
Investors expect the Fed to send more clear signals about the direction of interest rates. Including the outlook for the QE limit cut at the Fed’s annual meeting in Jackson Hole, Wyoming, Aug. 26-28.
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