Currencies Overview: Employment Pushes The New Zealand Dollar Higher, And Its US Counterpart Awaits Jobs Data

The US dollar settled near its recent lows on Wednesday, August 4th as investors awaited US jobs data as an indicator of interest rate expectations, while the New Zealand dollar rose with the country’s unemployment rate falling and expectations that interest rates will start to rise within weeks.

The spotlight is on labor markets around the world for any policy change as central bank officials from Wellington to Washington have set an employment recovery as a precondition for raising interest rates.

A sharp drop in New Zealand’s unemployment rate, which fell last quarter, pushed the New Zealand dollar up 0.6% to a one-month high of $0.7066.

The US dollar fell slightly against the euro in the Asian session, touching 1.1875 dollars against the single currency, while the lower yields of treasury bills supported the higher-yielding Asian currencies.

The Japanese yen has weakened since the beginning of the year, but reversed in July and gained about 2.5% against the dollar during the month.

The Japanese currency hit its highest level since late May yesterday and settled today at 109.02 yen.

The British pound stabilized before the Bank of England meeting tomorrow, Thursday, recording $1.3927.