AIRLINK 58.23 Decreased By ▼ -0.37 (-0.63%)
BOP 6.24 Increased By ▲ 0.03 (0.48%)
CNERGY 3.97 Decreased By ▼ -0.02 (-0.5%)
DFML 16.07 Increased By ▲ 0.06 (0.37%)
DGKC 67.61 Increased By ▲ 0.29 (0.43%)
FCCL 17.82 Increased By ▲ 0.27 (1.54%)
FFBL 25.40 Decreased By ▼ -0.49 (-1.89%)
FFL 9.15 Increased By ▲ 0.01 (0.11%)
GGL 9.79 Increased By ▲ 0.02 (0.2%)
HBL 113.77 Increased By ▲ 1.27 (1.13%)
HUBC 111.61 Decreased By ▼ -3.68 (-3.19%)
HUMNL 6.55 Decreased By ▼ -0.04 (-0.61%)
KEL 4.39 Increased By ▲ 0.17 (4.03%)
KOSM 4.59 Increased By ▲ 1.03 (28.93%)
MLCF 37.73 Increased By ▲ 0.62 (1.67%)
OGDC 125.21 Increased By ▲ 8.81 (7.57%)
PAEL 22.61 Decreased By ▼ -0.10 (-0.44%)
PIAA 11.10 Increased By ▲ 0.31 (2.87%)
PIBTL 6.17 Decreased By ▼ -0.08 (-1.28%)
PPL 109.07 Increased By ▲ 5.07 (4.88%)
PRL 26.84 Increased By ▲ 0.45 (1.71%)
PTC 10.48 Increased By ▲ 0.95 (9.97%)
SEARL 52.85 Increased By ▲ 0.86 (1.65%)
SNGP 66.38 Increased By ▲ 1.26 (1.93%)
SSGC 11.01 Increased By ▲ 0.08 (0.73%)
TELE 7.13 Decreased By ▼ -0.08 (-1.11%)
TPLP 11.93 Decreased By ▼ -0.06 (-0.5%)
TRG 76.07 Decreased By ▼ -0.78 (-1.01%)
UNITY 20.47 Decreased By ▼ -0.02 (-0.1%)
WTL 1.30 No Change ▼ 0.00 (0%)
BR100 6,441 Increased By 109.2 (1.72%)
BR30 22,098 Increased By 468.8 (2.17%)
KSE100 62,816 Increased By 901.5 (1.46%)
KSE30 21,134 Increased By 282.7 (1.36%)

NEW YORK: The greenback slipped against a basket of currencies on Monday as investors waited on testimony by Federal Reserve Chair Jerome Powell and jobs data due later this week for further indications on how much higher the US central bank is likely to raise interest rates.

Powell’s testimony before Congress on Tuesday and Wednesday and Friday’s jobs data “are going to be the key events this week that really substantiate the data that we got last month with respect to the January” numbers, said Bipan Rai, North American head of FX strategy at CIBC Capital Markets in Toronto.

The dollar index has bounced off a nine-month low of 100.80 reached on Feb. 1 as strong data and still-high inflation leads investors to reprice for higher rates for longer. The index was last down 0.26% on the day at 104.35.

January’s jobs report released on Feb. 3 showed that employers unexpectedly added 517,000 jobs, while the unemployment rate hit more than a 53-1/2-year low of 3.4%, pointing to a stubbornly tight labor market. That “seems a bit suspicious at the surface, so a lot of the data that we get this week will tell us whether or not that’s really more than just suspicious or more than, say, seasonal adjustment trends, and actually something there that the Fed is getting wrong in terms of how tight the labor market is and what that means potentially for inflation,” said Rai.

Powell’s testimony will be watched for any new signals on whether the US central bank could reaccelerate the pace of rate hikes in response to the recent data. After delivering jumbo hikes last year, the Fed has raised interest rates by 25 basis points each at its last two meetings.

Fed funds futures traders are pricing in a 76% probability the Fed will raise rates by 25 basis points at its March 21-22 meeting, and a 24% likelihood of a 50 basis points increase.

The euro was last up 0.35% on the day at $1.0671, while sterling was down 0.27% at $1.2010. The dollar gained 0.06% to 135.88 yen ahead of the final policy meeting for Bank of Japan Governor Haruhiko Kuroda on Thursday and Friday.

The yuan dipped after China on Sunday set a lower-than-expected target for economic growth this year of around 5%. The offshore yuan was last at 6.9391 per dollar, while the Australian dollar, often traded as a liquid proxy for the yuan, fell 0.46% to $0.6737.

Comments

Comments are closed.