Dollar steadies as traders eye Federal Rate path following soft U.S. jobs data By Investing.com

Investing.com – The US dollar steadied on Monday after falling the previous week on weaker-than-expected non-farm payrolls data, prompting traders to raise the timeline for possible interest rate cuts from the Federal Reserve this year.

At 04:31 EDT (08:31 GMT), US Dollars, which tracks the greenback against a basket of six other currencies, was up 0.04% at 105.07.

It fell last week to its lowest level in more than three weeks, a decline fueled by bets that the Fed may now choose to cut interest rates from their highest levels in more than two decades as soon as September. Markets had previously been betting that the central bank would introduce an initial cut of 25 basis points in November.

The weak payrolls data also puts upcoming addresses by a series of key Fed officials this week squarely into focus. New York Fed President John Williams and Richmond Fed President Thomas Barkin are scheduled to speak, followed by Minneapolis Fed President Neel Kashkari the next day. Chicago Fed President Austin Goolsbee and Fed Governor Michel will appear later this week as well.

The euro rose 0.1 percent to $1.0769. The European Central Bank is widely expected to cut interest rates in June, although it remains uncertain what will happen to monetary policy after the meeting.

Meanwhile, the British pound rose 0.2% to $1.2573. Data last week showed that the UK's key services sector remains healthy, which could give the Bank of England more room to delay interest rate cuts.

Broader Asian currencies fell after achieving some recent strength against the dollar. But the possibility that US borrowing costs will remain high in the near term has kept most regional currencies trading negative for the year.

The Japanese yen pair rose by 0.6% on Monday, despite a slowdown in trading volumes in the pair due to the market holiday in Japan, while the Chinese yuan pair fell by 0.4%.

The Singapore dollar pair advanced by 0.1%, while the Indian rupee pair rose by 0.1%.

Elsewhere, the Australian dollar rose 0.3%, approaching two-month highs as traders prepare for the Reserve Bank of Australia's meeting on Tuesday. While the Reserve Bank of Australia is expected to keep interest rates unchanged, it is also expected to strike a chord after a stronger-than-expected inflation reading in the first quarter.