Forex – Dollar Index Slips Lower but Remains Supported

Dollar slips vs. rivals but U.S. jobs data still supports – The U.S. dollar slipped lower against other major currencies on Monday, but losses were expected to remain limited as Friday’s strong U.S. employment data continued to support demand for the greenback.

The greenback was boosted after the U.S. Department of Labor reported on Friday that the economy added in January, beating expectations for a 184,000 gain. The unemployment rate remained unchanged at 4.1% this month, in line with expectations.

The strong wage growth data fueled inflation expectations, and underlined the case for the Federal Reserve to raise interest rates at a faster pace this year.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.11% at 88.94 by 05:15 a.m. ET (09:15 GMT).

The euro and the pound were fractionally higher, with up 0.10% at 1.2467 and with adding 0.10% to 1.4127.

Earlier Monday, data showed that activity in the UK service sector last month.

The yen and the Swiss franc were also higher, with down 0.28% at 109.85 and with shedding 0.18% to 0.9296.

Elsewhere, the Australian and New Zealand dollars were also stronger, with rising 0.30% to 0.7950 and with gaining 0.37% to 0.7327.

Meanwhile, edged down 0.20% to trade at 1.2403.

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