WSJ: Dollar Gives Back Gains on Mixed U.S. Jobs Report
The dollar gave back earlier gains Friday, as mixed February jobs data led investors to believe a rate increase from the Federal Reserve remains distant.
The Wall Street Journal Dollar Index, which gauges the dollar against a basket of 16 currencies, was recently down 0.3% at 88.93, amid losses against the euro and yen.
U.S. employers picked up the pace of hiring in February, a sign of steady economic growth despite financial-market turmoil and weakness abroad. The gains, however, were tarnished by a drop in average hourly earnings and wages.
Some market participants see growing wages as a harbinger of rising consumer prices, a factor that likely would hasten a rate increase from the Federal Reserve. Lower rates tend to weigh on the dollar, by making it less attractive to yield-seeking investors.
“The headline employment number is not the key data today because it won’t change the Fed’s opinion” about a rate increase, said Marc Chandler, global head of currency strategy at Brown Brothers Harriman.
“We’re not seeing any sustained increases in hourly earnings,” he said. “That’s a problem.”
The euro was recently up 0.4% at $1.1002. The dollar was down 0.2% at ÂĄ113.48.
