NEW YORK: The dollar sank to a three-week low against the yen on Monday and slipped against other major currencies as investors continued to price in expectations that the Federal Reserve is near the end of its tightening cycle.
The Fed, however, is widely expected to raise interest rates by another 25 basis points this month despite Friday’s data showing US job gains were the smallest in 2-1/2 years. The expected rate hike in July comes after a Fed pause in June.
Meanwhile, Norway’s crown, the second-weakest performing currency in the G10 this year, strengthened after data showed core inflation continued to rise in June and hit a fresh record.
The Chinese yuan, on the other hand, slumped against the dollar after weak inflation numbers in the world’s second-largest economy.
The greenback fell as low as 141.565 yen, the lowest since June 21. It was last down 0.4% at 141.655. It slid nearly 1.3% on Friday.
The dollar index, which tracks the US currency against a basket of major peers, was down 0.1% at 102.20 having fallen 0.87% on Friday after US nonfarm payrolls increased 209,000 in June, missing market expectations for the first time in 15 months.
The euro was last slightly up at $1.0969 after a 0.7% Friday jump.
Sterling fell 0.3% to $1.2792, having risen 0.79% the previous session to a 15-month high of $1.2850.
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