FOREX-Dollar rallies to biggest weekly gain since June

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* Dollar index jumps 0.6% * Safe haven Japanese yen and Swiss franc hit comments) By David Henry NEW YORK, Aug.6 (Reuters) – The dollar rose sharply on Friday, boosted by a report solid on US employment towards its biggest weekly gain in seven weeks. The report showed that jobs rose more than expected in July, pushing bond yields higher, as the Federal Reserve could act faster to tighten US monetary policy. The dollar index against major currencies was up nearly 0.6% to 92.776 by 3:06 p.m. ET (1906 GMT). Against the safe havens of the Japanese yen and Swiss franc, the dollar posted its largest daily gains since June, reflecting a risky trend as well as the attractiveness of higher US interest rates. The report on the non-farm payroll in the United States showed that the number of jobs increased by 943,000 in July from the 870,000 predicted by economists polled by Reuters. The news rekindled the dollar’s momentum, which was founded in the middle of the week by statements by Fed Vice Chairman Richard Clarida suggesting the conditions for an interest rate hike could be in place as soon as the year ends. 2022. Fed officials have said improving jobs is key as they start. to get more of the additional support they provided to the economy during the pandemic. Clarida’s remarks lifted Treasury yields after five weeks of decline, while “real” yields, excluding inflation, are expected to interrupt a six-week streak of decline. The yield on the 10-year Treasury bill rose to 1.3%, from 1.18% on Monday. The greenback appreciated 0.9% against the Swiss franc and 0.4% against the Japanese yen, which traded at 110.215 per dollar. The euro fell 0.6% to $ 1.1759, under pressure early in the session for weaker-than-expected German industrial orders data. The British pound fell almost 0.4% to $ 1.3878. Unlike the U.S. payroll report, in Canada, a domestic employment report showed significantly fewer jobs added in July than expected. The greenback appreciated 0.4% to 1.2555 Canadian dollars. Analysts have warned that it would take more evidence than a jobs report to push US returns significantly again. Friday’s yield was almost half a percentage point lower than at the end of March. Reactions to monthly jobs reports have changed often this year in the days after the data was released, Wells Fargo Securities strategists found when examining the 10-year Treasury yield. Markets will then watch for comments from Fed policymakers at the central bankers’ symposium in Jackson Hole, Wyoming, later this month. Big moves in exchange rates are unlikely until Fed officials say they are prepared to lead other central banks in withdrawing economic support, said Joseph Trevisani, senior analyst at fxstreet.com. “The Fed is pumping a lot more money into the US economy and, by diffusion, into the rest of the world than anyone,” Trevisani said. When Fed policymakers are confident in US job gains to raise interest rates, the global economy could be strong enough to support riskier currencies instead of the dollar. A recent Reuters poll of strategists showed that most predicted a decline in the dollar over the next year. “We are in the phase of the economic cycle where growth and global trade will remain relatively strong, and this will create a bearish bias for the dollar,” said Vasilieos Gkionakis, global head of foreign exchange strategy at the Lombard Odier group. Cryptocurrency bitcoin rose 5% to $ 42,870 on Friday afternoon in New York City. Ether gained 3% to $ 2,924. =================================================== ====== Currency Bid Quote at 3:06 PM (1906 GMT) Description RIC Last US Close YTD Percent Change YTD Higher Bid Lower Bid Previous Change Session Dollar Index 92.7760 92.2670 + 0.56% 3.106% +92.8440 + 92.2660 Euro / Dollar $ 1.1759 1.1833 $ -0.62% -3.75% +1.1834 $ +1.1755 Dollar / yen 110.2150 109.7850 + 0.40% + 6.67% +110 , 3500 +109.7100 Euro / yen 129.60 129.89 -0.22% + 2.11% +129.9600 +129.5900 Dollar / Switzerland 0.9150 0.9065 + 0.93% + 3, 42% + 0.9156 +0.9065 Sterling / Dollar $ 1.3878 $ 1.3927 -0.35% +1.58% +1.3932 $ +1.3862 Dollar / Canadian 1.2555 1.2501 +0 , 44% -1.40% +1.2581 +1.2495 Aussie / Dollar $ 0.7353 $ 0.7403 -0.70% -4.45% + $ 0.7406 + $ 0.7347 Euro / Switzerland 1.0759 1.0728 + 0.29% -0.46% +1.0763 +1.0721 Euro / Sterling 0.8472 0.8495 -0.27% -5.20% +0.8501 +0, 8471 NZ $ 0.7011 $ 0.7060 -0.69% -2.37% + $ 0.7062 + $ 0.7003 Dollar / Dollar Dollar / Norway 8.8835 8.8200 + 0.78% + 3.51% +8 .8900 +8.8210 Euro / Norway 10.4471 10.4307 + 0.16% -0.19% +10.4585 +10.4053 Dollar / Sweden 8.6678 8.6103 +0.0 4% + 5.75% +8.6724 +8.6061 Euro / Sweden 10.1926 10.1886 + 0.04% +1.15% +10.2013 +10.1605 (Reporting by David Henry in New York, Sujata Rao and Ritvik Carvalho in London, and Tom Westbrook in Singapore Edited by Andrew Heavens and David Holmes)


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