US dollar steady

NEW YORK: The US dollar was steady on Thursday in a volatile week ahead of a crucial jobs report and with data indicating labor market weakness, which has reinforced expectations the Federal Reserve will cut rates this month. Data showed on Thursday that the number of Americans filing new applications for jobless benefits increased more than expected last week, consistent with softening labor market conditions. Furthermore, the ADP National Employment Report showed US private payrolls increased less than expected in August.

The dollar edged higher in relatively steady trade, reflecting investor wariness of making any big moves ahead of Friday’s more comprehensive non-farm payrolls report.

The dollar strengthened 0.25 percent to 148.46 against the Japanese yen. It was up 0.15 percent to 0.80570 against the Swiss franc. The greenback lost ground against both safe-haven currencies on Wednesday. The euro fell 0.16 percent to $1.164175. “It’s been choppy … with enough questions around where the economy is at that people are just likely trying to square up before Friday’s number and not taking any outward bets one way or the other,” said Marvin Loh, senior global market strategist at State Street in Boston.

The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.21 percent to 98.355 after dropping in the previous session. Several Federal Reserve officials said labour market worries continue to underpin their view that rate cuts still lie ahead for the central bank, boosting expectations of an imminent rate cut. The Fed is due to meet on September 16 and 17.

In other currencies, the pound sterling weakened 0.12 percent to $1.3425 after gaining in the last session. The Canadian dollar weakened 0.28 percent versus the greenback to C$1.38 per dollar. The Australian dollar weakened 0.6 percent versus the greenback to $0.6504.

Spot gold fell 0.59 percent to $3,537.52 an ounce, easing from a record high reached on Wednesday.