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The dollar was broadly stable on Monday, May 6, after a report showed a slowdown in job growth in the United States, and raised hopes that the US Federal Reserve would cut interest rates this year, while the yen fell after a wave of volatility resulting from what is believed to be intervention by the Japanese government last week.

Last week, the yen recorded the strongest weekly gains since early December 2022 after two rounds of what are believed to be interventions by Tokyo to move the currency away from the lowest level in 34 years at 160.245 yen to the dollar. The yen rose 3.5% last week.

The yen fell broadly on Monday, falling 0.63% to 153.95 per dollar, 0.60% to 192.62 per pound sterling, and 0.64% to 165.715 per euro.

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The yuan fell in external transactions to 7.2160 to the dollar, after rising more than 1% last week. The yuan began internal spot transactions at 7.2009 to the dollar, the strongest level since March 25. It recorded 7.2144 per dollar in the latest trading.

Data on Friday showed US job growth slowed more than expected in April and annual wage increases fell below 4% for the first time in nearly three years.

Signs of a slowdown in the labor market have strengthened optimism that the US central bank can take measures to reduce inflation without pushing the economy into recession.

The dollar index, which measures the performance of the US currency against six major currencies, reached 105.16 points after touching the lowest level in more than three weeks at 104.52 on Friday. The index rose about 4% this year.

The euro recorded $1.0764 in the latest trading, and the sterling did not move much to record $1.2545. The New Zealand dollar fell 0.17% to $0.600.

The Australian dollar stabilized at $0.6612 ahead of the monetary policy decision that the Reserve Bank of Australia will issue tomorrow, Tuesday, and the central bank is generally expected to keep interest rates at 4.35%, as has been the case since November.