Reported 6 months ago
The US dollar strengthened as the US economy added more jobs than expected, suggesting the Federal Reserve may delay implementing rate cuts this year. The dollar index rose 0.8% to 104.91 following a report of 272,000 job creations in May, pushing back expectations of Fed easing. While wages increased and the unemployment rate edged up, the market response signals a potential delay in Fed's monetary policy changes, with rate futures now pricing in only one cut by the end of the year. Other currencies like the yen and euro were also impacted by these developments, with the euro falling against the dollar after the European Central Bank's rate cut. The Bank of Japan is expected to decide its rate policy next week, potentially tightening credit conditions.
Source: YAHOO