Dollar is making up for its losses and Yuan is falling after weak inflation data in China

The dollar recovered its losses on Monday, after falling after data showed that jobs in the United States recorded the lowest growth in two and a half years, while disappointing inflation figures in China weighed on the yuan and the Australian and New Zealand dollars.

Figures released on Friday showed US non-farm payrolls grew by 209,000 last month, missing market expectations for the first time in 15 months.

However, details in the jobs report reflected a large and sustained increase in wages, indicating that labor shortages persist in some sectors of the market.

The dollar rose in Asian trading after falling about 1 percent against a basket of currencies on Friday following the release of the data, and recorded the largest increase against the Japanese yen.

The dollar rose in the latest trading 0.53 percent to 142.98 yen, after falling nearly 1.3 percent against the Japanese currency on Friday, with the decline in US Treasury yields.

The pound sterling recorded in its latest trading at $ 1.2809, after jumping to the highest level in more than a year at $ 1.2850 on Friday, while the euro fell 0.14 percent to $ 1.0953.

The focus is now on US inflation data due on Wednesday, with expectations pointing to the core consumer price index rising by 5 percent year-on-year in June.

Data on Monday showed China’s producer prices fell at the fastest rate in seven-and-a-half years in June, and inflation was the slowest since 2021, raising hopes that China will take more economic support measures.

The weak data sent the Australian and New Zealand dollars lower.

The Australian dollar fell 0.4% to $0.66655, and the New Zealand dollar fell 0.45% to $0.6181.

The yuan in foreign transactions fell about 0.1 percent to 7.2411 yuan per dollar, and in transactions within China it fell approximately 0.2 percent to 7.2340 yuan per dollar.