Dollar Holds Steady on US Jobs, Middle East Tensions

7 Oct 2024 , 10:50 AM

Japan’s yen sank to its lowest level in nearly two months, and other major currencies were also down early on Monday as the dollar extended a rally triggered by Friday’s positive US jobs data and an escalation in the Middle East crisis.

Sterling was likewise unchanged around $1.3122, following last week’s 1.9% decline, the sharpest since early 2023.

The yen fell slightly to 149.10 per dollar, its lowest level since August 16, before reducing losses to trade around 148.40. This followed a more than 4% drop last week, the largest weekly percentage drop since early 2009.

The dollar’s gains came after a U.S. jobs report that showed the greatest boost in jobs in six months in September, a reduction in the unemployment rate and significant increase in wages, indicating a strong economy and forcing markets to reconsider how dovish the Fed would be.

In the latest Middle East developments, Israel targeted Hezbollah sites in Lebanon and the Gaza Strip on Sunday, one year after the Oct. 7 bombings that launched its conflict. Israel’s defence minister also stated that all measures for retribution against arch-enemy Iran were on the table.

The dollar index measure against major counterparts remained steady. It surged 0.5% on Friday to a seven-week high, totalling more than 2% gains for the week, the most in two years. The euro traded at $1.0970, down 0.06%.

For feedback and suggestions, write to us at [e-mail]