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The dollar approached a 3-week low against a basket of currencies on Tuesday, August 31, as investors looked to this week’s US jobs data for clues about the timing of stimulus cuts.
The dollar has been on the decline since US Federal Reserve Chairman Jerome Powell’s statement at Jackson Hole on Friday, in which he stated that the central bank may scale back its bond-buying program this year, though he did not mention a specific time frame.
Traders said that trading on Tuesday will also likely be affected by month-end inflows from companies for import and export transactions.
The dollar index fell 0.25% to 92.456, its lowest since August 6. The euro rose 0.3% against the broadly lower dollar and hit a three-week high of $1.18315.
The sterling also rose to a two-week high of $1.38010 before falling back below $1.38. The yen was little changed and was trading at 109.85 against the dollar.
The New Zealand dollar rose 0.9% to $0.70560, a day after Prime Minister Jacinda Ardern partially eased restrictions to combat the Covid-19 pandemic outside Auckland.
The Chinese yuan fell in offshore transactions against the dollar but stabilized broadly after weak data from surveys of factories and the service sector.
As for cryptocurrencies, Bitcoin rose 1.6% to $47,752, to offset some of the previous day’s losses.
