Dollar Up but Near One-Month Low Over Fed Tapering Expectations Delay By

Dollar Up but Near One-Month Low Over Fed Tapering Expectations Delay By

© Reuters.

By Gina Lee – The dollar was up on Monday morning in Asia, but after investors postponed expectations of when the U.S. Federal Reserve will begin asset tapering.

The that tracks the greenback against a basket of other currencies edged up 0.14% to 92.165 by 10:51 PM ET (2:51 AM GMT).

The pair inched up 0.09% to 109.82.

The pair was down 0.29% to 0.7437. The pair was down 0.25% to 0.7142, after climbing to $0.7170 on Friday for the first time since Jun. 11.

The pair inched up 0.02% to 6.4541.

The pair inched down 0.06% to 1.3856.

The latest U.S. jobs report, released on Friday, disappointed. were at 235,000, the smallest gains in seven months, and the was 5.2% for August. The dollar fell to 91.941, its lowest level since Aug. 4, on Friday.

In Europe, the U.S. data gave the euro a boost as expectations that the would begin asset tapering when it hands down its policy decision on Thursday. The euro was flat at $1.18775 after hitting its highest level since Jun. 29, $1.1909, at the end of the previous week.

With labor market recovery a condition for the Fed to begin asset tapering, Commonwealth Bank of Australia (OTC:) (CBA) analysts now expect the process to begin in December 2021.

“The U.S.’s deteriorating COVID-19 situation will weigh on the dollar because the situation is better elsewhere in the major economies,” CBA analysts said in a note.

Meanwhile, the Australian dollar remained near its highest level since Jul. 15 with the due to hand down its latest policy decision on Tuesday.

National Australia Bank (OTC:) predicts the central bank will reduce asset purchases again at the meeting, “although the optics of tapering amid protracted lockdowns means it is likely to be a close decision,” analyst Tapas Strickland said in a note.

Following strong two-week rallies, both the Australian and New Zealand dollars “appear to have firmly broken out of recent ranges,” said Strickland.

In cryptocurrencies, bitcoin remained around the $51,785.60 mark after hitting $51,920 for the first time since May 12 earlier. El Salvador’s bitcoin law that will make the virtual currency legal tender in the country, will take effect on Tuesday.

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