Markets

Dollar index near flat as COVID worries offset upbeat economic data

  • Dollar little change, COVID cases a worry
  • Bitcoin, ether rise
Published August 9, 2021

NEW YORK: The US dollar index was little changed on Monday as investors assessed how rising COVID-19 cases in the United States might affect the outlook for the economy.

Earlier, bitcoin hit its highest in nearly three months. It was last up 4.3% at $45,726.71, while Ether was up 3.4% at $3,117.10.

The US dollar index, which measures the greenback against a basket of currencies, was last up 0.07% at 92.916, near its four-month high of 93.194.

Data Monday showed US job openings jumped to a fresh record high in June and hiring increased. That came on the heels of Friday's US monthly jobs report that showed US employers hired the most workers in nearly a year in July and continued to raise wages.

The report pushed bond yields higher on the view that the Federal Reserve may act more quickly to tighten US monetary policy. Fed officials have made a jobs market recovery a condition of tighter monetary policy.

"The market is struggling to balance signs of a stronger jobs market with rising Delta concerns," said Adam Button, chief currency analyst at ForexLive. "Those opposing forces have left it largely unchanged."

The dollar rose sharply following Friday's jobs report.

Oil stocks pull S&P 500, Dow lower as virus fears weigh

COVID-19 infections in the United States rose by at least 22,783 on Sunday to 35.94 million total cases, according to a Reuters tally. The impact of the Delta variant in the United States has added to concerns as COVID-19 cases also are rising across Asia.

Against the dollar, the euro was down 0.2%.

The Japanese yen was little changed versus the greenback at 110.26 per dollar, while sterling was last trading at $1.3852, down 0.14% on the day.

Sharply lower oil prices weighed on the commodity-linked Australian dollar, which eased 0.2% to US$0.7334.

Speculators cut their net long dollar positions in the latest week, data showed on Friday, but they are still positioned for its gains.

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