© Reuters. FILE: A bundle of five-dollar bills is examined at the Washington Bureau of Engraving and Printing, March 26, 2015. (REUTERS/Gary Cameron)
(Updates rates, adds analyst quote in paragraph 6, adds paragraph 12 on Fitch keeping US credit rating on negative watch)
by Hannah Lang
WASHINGTON (Reuters) – The US dollar rose on Friday after the May non-farm payrolls report showed that employment numbers rose as traders saw the merits of the US Federal Reserve likely to outpace a rate hike in June.
The report showed that public and private sector payrolls increased by 339,000 in May, far exceeding expectations of 190,000 on average by economists polled by Reuters. The May jump followed a rise of 253,000 in April.
Despite strong hiring, the unemployment rate rose to 3.7% from a 53-year low of 3.4% in April.
The = dollar, which measures the greenback against six others, rose 0.435% at 103.980, on track for its biggest daily percentage gain since mid-May. But the dollar fell over the course of the week by 0.2%, its largest weekly decline since early May.
The dollar index fell 0.62% on Thursday, its worst day in nearly a month, after Federal Reserve officials indicated the central bank would forego raising interest rates this month.
“The Fed has put themselves on the hook with these recent statements about the need to pause, then maybe they will look to raise in July, and I think they will come to regret that after today’s non-farm payroll number,” said Paresh Upadiyaya, director of fixed income and currency strategy at Amundi. US.
Money markets estimate a roughly 29% chance of a price hike in June, down from nearly 70% earlier in the week. fedwatch
Philadelphia Federal Reserve Chairman Patrick Harker said Thursday that it’s time to hit the pause button to at least hold one meeting and see how it goes.
The day before, Fed Governor Philip Jefferson said that skipping a rate hike would “allow the committee to see more data before making decisions about how steady additional policy will be.”
“The challenge is we’ve entered a Fed hiatus before the (FOMC) meeting, which means it’s going to be difficult to see a pushback from officials or any guidance from officials after this employment report,” Mark said. Chandler, Chief Market Strategist at Bannockburn Global Forex.
The US Senate’s passage of a bill Thursday night to suspend the debt ceiling and avoid a catastrophic default removed a pillar of support for the dollar, which ironically has been one of the main beneficiaries of the uncertainty due to its safe-haven status.
Fitch Ratings said on Friday that the US credit rating of “AAA” would remain on negative watch, despite the debt limit agreement, citing the frequent political standoffs and the last-minute suspension of the cap before the deadline.
The dollar rose 0.8 percent against the yen this week, on its way to its biggest weekly percentage rise since mid-May.
The pound rose 0.8% against the dollar, on pace for its biggest weekly gain since late April.
The euro last fell 0.45% to $1.07135, its highest level in about a week after a boost on Thursday from European Central Bank President Christine Lagarde, who said further policy tightening was necessary.
AUD=D4 rose after Australia’s independent wage-setting body announced that it would raise the minimum wage by 5.75% from July 1st. 0.59% against the dollar at $0.661.
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Coin bid prices at 3:03 PM (1903 GMT)
a description
Rick
last
US close
former
a class
Pct change
Percent to date
changes
High bid
low bid
dollar index
= US dollars
103.9800
103.5400
+0.44%
0.473%
+104.0800
+103.3800
euro/dollar
Euro = EBS
1.0713 USD
1.0762 USD
-0.45%
-0.01%
+ 1.0779 USD
+ $1.0706
dollar / yen
139.9100
138.8150
+0.79%
+6.72%
+140.0650
+138.6000
euro / yen
EURJPY =
149.88
149.36
+0.35%
+6.83%
+149.9600
+149.2600
dollars / Swiss
0.9087
0.9055
+0.34%
-1.74%
+0.9090
+0.9037
British pound / dollar
GBP=D3
$1.2454
$1.2526
-0.57%
+2.99%
+ $1.2544
+ $1.2442
Canadian Dollar
CAD=D3
1.3429
1.3449
-0.14%
-0.88%
+1.3451
+1.3408
Australian dollar / dollar
Australian dollar = D3
$0.6612
$0.6573
+0.60%
-2.99%
+ $0.6638
+ $0.6572
Euro / Swiss
EURCHF =
0.9735
0.9743
-0.08%
-1.62%
+0.9760.0000.00
+0.9729
Euro / British Pound
EURGBP =
0.8601
0.8592
+0.10%
-2.75%
+0.8605
+0.8579
New Zealand dollar / New Zealand dollar
NZD=D3
$0.6064
$0.6070
-0.09%
-4.49%
+ $0.6111
+ $0.6059
dollar / Norway
NOK=D3
11.0210
11.0480
-0.20%
+12.35%
+11.0620
+10.9640
Euro / Norway
EURNOK =
11.8048
11.8970
-0.77%
+12.49%
+11.9295
+11.8038
Dollar / Sweden
Swedish Krona =
10.8000
10.8021
-0.54%
+3.77%
+10.8170
+10.6850
EUR / Sweden
EURSEK =
11.5664
11.6296
-0.54%
+3.74%
+11.6364
+11.5097