Business

TOKYO (APP) – The dollar rose against the euro and yen on Monday after falling in US trade owing to a weak report on workers’ pay that reignited questions about the timeline for an interest rate hike.


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In Tokyo afternoon trade, the greenback fetched 124.05 yen, edging up from 123.91 yen in New York late Friday.

The euro bought $1.0976 and 136.15 yen against $1.0984 and 136.10 yen in US trade.

On Friday, the dollar fell against other major currencies as the US report showed wages and salaries rose just 0.2 percent in the second quarter, decelerating from 0.7 percent growth in the first.

The disappointing data came after confidence rose on a report from the US Commerce Department Thursday that said the world’s top economy expanded at an annual rate of 2.3 percent in the April-June period, the strongest growth since the third quarter of 2014.

And while the figure was a little below expectations, the department also revised up its estimate on the first quarter of the year — which was hit by severe winter weather — to growth of 0.6 percent, from a 0.2 percent contraction.

Currency traders are keeping a close eye on US data as they try to gauge the timeline for a Federal Reserve rate hike — a plus for the dollar — which is widely expected in September or December.

Sentiment on Monday in Asia was bruised, however, after a key gauge of Chinese manufacturing activity plunged to a two-year low in July, the latest data suggesting the world’s second largest economy faces challenges.
The dollar was mixed against other Asia-Pacific currencies. It rose to Sg$1.3747 from Sg$1.3727 on Friday, to 45.70 Philippine pesos from 45.65 pesos, to Tw$31.64 from Tw$31.55 and to 13,502 Indonesian rupiah from 13,487 rupiah.

The greenback weakened to 1,165.85 South Korean won from 1,168.24 won, to 35.03 Thai baht from 35.14 baht and to 63.95 Indian rupees from 64.03 rupees.

The Australian dollar slipped to 72.97 US cents from 73.01 cents, while the Chinese yuan fetched 19.98 yen against 19.94 yen.