Dollar near its lowest level in seven months after the jobs data

On Monday, the dollar approached its lowest level in seven months against other major currencies, after data last week showed that the Federal Reserve may slow the pace of decisions to raise interest rates, while the reopening of Chinese borders boosted higher-risk currencies.

The yuan in foreign transactions approached its highest level in five months against the dollar, and the Australian and New Zealand dollars rose sharply.

The dollar recorded its largest quarterly loss in 12 years in the last three months of 2022, supported by investors’ belief that the Federal Reserve will not raise interest rates by more than five percent compared to their current levels between 4.25 percent and 4.50 percent, as inflation and growth decline.

The monthly jobs report released on Friday showed an increase in the number of non-farm payrolls and a slowdown in wage growth, which is positive news for the US central bank.

There were other signs of a slowing economy, with service industry activity in the United States contracting for the first time in more than two-and-a-half years in December.

The dollar index, which measures the performance of the US dollar against six major currencies, fell 0.1% to 103.62, after falling 1.15% on Friday, as investors turned to riskier assets.

The pound rose again on Monday, rising 0.55% to 1.2159, after gaining 1.5% on Friday. The euro rose 0.28% to 1.0674 thanks to its 1.17% rise on Friday. The Japanese yen fell 0.2 percent to 132.33 against the dollar.

The Australian dollar rose 1.03% to $0.695, its highest level against the US currency since August 30, while the New Zealand dollar rose 0.67% to $0.641, close to its highest level in three weeks.