The dollar shook off early weakness to rise to more than a one-week high on Tuesday, after data showed U.S. job openings surging to a record high in June.
The dollar shook off early weakness to rise to more than a one-week high on Tuesday, after data showed U.S. job openings surging to a record high in June. The dollar index, which tracks the greenback against six major rival currencies, was up 0.34 percent to 93.745. The Labor Department said on Tuesday that job openings, a measure of labor demand, increased 461,000 to a seasonally adjusted 6.2 million, the highest level since the series started in December 2000.
“The JOLTS job openings data came out and it was much stronger than expected,” said Minh Trang, senior currency trader at Silicon Valley Bank in Santa Clara, California.
“This reinforces the strong nonfarm (payrolls) data from last Friday, and turned the dollar higher significantly.”
The greenback, which has weakened since the start of the year, got a boost on Friday after a strong U.S. July payrolls report bolstered the case for the Federal Reserve to further tighten monetary policy.
Tuesday’s strong job openings data helped the dollar shake of some the weakness it experienced on Monday following dovish comments from St. Louis Fed President James Bullard and Minneapolis Fed President Neel Kashkari.
Bullard said the US central bank could leave interest rates where they are for now because inflation is not likely to rise much even if the U.S. job market continues to improve, while Kashkari talked about inflation being below target.
The euro was down 0.43 percent to $1.1742 on Tuesday, close to last week’s 2-1/2-year highs.
The European Central Bank is widely expected to scale back its quantitative easing programme as doubts rise about whether the Fed will be able to raise rates again this year, which has boosted the euro.
Sterling hit a 10-month low against the euro as investors grew more bearish about Britain’s economic outlook after consumer spending fell for a third month in a row in July.
The Canadian dollar steadied against its U.S. counterpart, holding near a three-week low set the day before, as oil prices fell and data showed slower Chinese and German trade growth.
China’s yuan strengthened to a 10-month high against the dollar, breaching a key psychological level, after the central bank set a firmer guidance rate and data showed a larger-than-expected increase in the country’s foreign exchange reserves.