The dollar struggled to recover in Asian trade on Friday, hobbled by fresh speculation that a widely expected rate hike later this month could be the last before Federal Reserve hits the pause button on its tightening cycle.
Investors have been alarmed by recent sharp falls in U.S. treasury yields, with an inversion of the yield curve signaling a sharp economic slowdown or even a recession down the road.
Their immediate focus was on November U.S. non-farm payrolls, unemployment and wage data due to be released later on Friday for clues on how the world’s top economy is faring.
Arguably, one of the strongest parts of the U.S. economy has been the labour market.
If we see any cracks appearing in there, the U.S. dollar will start to fade off, said Chris Weston, Melbourne-based head of research at foreign exchange brokerage Pepper stone.
Dollar investors were given more reason to be cautious after the Wall Street Journal reported Fed officials were considering whether to strike a wait-and-see attitude following a likely rate increase in December.
Source: Voice of Nigeria