Dollar Near One-Month Low as US Jobs Data Awaits

The dollar approached a one-month low on Monday at the start of a busy week with US jobs data and a decision by the Australian Central Bank.

The dollar index, which measures the performance of the US currency against six major currencies, recorded 92.065, slightly down from its level on Friday, when it fell to 91.775 for the first time since June 28.

The index lost 0.88% last week, the worst performance since the beginning of May after Federal Reserve Chairman Jerome Powell confirmed in the middle of the week that raising interest rates is “a long way” and that the labor market still has “room to recover.”

Last month, the dollar index recorded its highest level since the beginning of April at 93.194, with traders forming positions in anticipation of the start of reducing stimulus measures this year.

Economists polled by Reuters had expected 926,000 non-farm payrolls to increase in July, the largest increase in 11 months. The data is released on Friday.

The unemployment rate is also expected to decline to 5.7% from 5.9% in June.

The dollar was little changed against the Japanese currency, recording 109.67 yen on Monday and easing slightly at 1.1873 against the euro.

Sterling rose 0.11% to $1.3905, and a policy announcement is due from the Bank of England on Thursday.

The Australian dollar settled at $0.7347 ahead of the Reserve Bank of Australia’s meeting on Tuesday and is widely expected to reverse a previous decision to scale back stimulus, as long-term isolation measures picked up growth.