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Dollar index edges up on upbeat data; virus worries linger

Dollar index edges up on upbeat data; virus worries linger

FILE PHOTO: A U.S. dollar banknote is seen in this illustration taken May 26, 2020. REUTERS/Dado Ruvic/Illustration/File Photo

NEW YORK : The U.S. dollar edged up on Monday to touch the highest in more than two weeks against a basket of currencies, buoyed by upbeat U.S. data, even as traders kept a close watch on the spread of COVID-19 cases in the United States.

Bitcoin hit its highest in nearly three months. It was last up 5.7per cent at US$46,352.66, while ether was up 5.27per cent at US$3,174.27.

The U.S. dollar index, which measures the greenback against a basket of currencies, was last up 0.09per cent at 92.937, its highest since July 23 and not far from its four-month high of 93.194.

Data Monday showed U.S. job openings jumped to a record high in June and hiring increased. That came on the heels of Friday's U.S. monthly jobs report that showed U.S. employers hired the most workers in nearly a year in July and continued to raise wages.

The dollar rose sharply following Friday's report, with the upbeat jobs news helping to support the view that the Federal Reserve may act more quickly to tighten U.S. monetary policy. Fed officials have made a jobs market recovery a condition of tighter monetary policy.

"The market is struggling to balance signs of a stronger jobs market with rising Delta concerns," said Adam Button, chief currency analyst at ForexLive in Toronto.

"I would say the market is holding its breath on Delta and how quickly it resolves," he said. "It's led to a standstill in the forex market."

Coronavirus cases and hospitalizations in the United States are at a six-month high, fueled by the spread of the Delta variant. The impact of the Delta variant in the United States has added to concerns as COVID-19 cases also are rising across Asia.

Against the dollar, the euro was down 0.2per cent.

Meanwhile, the dollar is up 0.6per cent versus the Swiss franc after rising 0.95per cent on Friday.

The Japanese yen was little changed versus the greenback at 110.28 per dollar.

Sharply lower oil prices weighed on the commodity-linked currencies, including the Australian dollar, which eased 0.3per cent to USUS$0.7334. The Canadian dollar fell 0.20per cent versus the greenback at 1.26 per dollar.

Speculators cut their net long dollar positions in the latest week, data showed on Friday, but they are still positioned for the greenback to rise.

(Reporting by Caroline Valetkevitch; additional reporting by Tommy Wilkes in London; editing by David Holmes, Tomasz Janowski, Jonathan Oatis and David Gregorio)

Source: Reuters

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