Analysts stated that even if U.S. jobs numbers were disappointing last Friday, the U.S. dollar will still reign supreme. This is if the Federal Reserve stays on its current course in raising rates before the year ends.
Philip Wee, senior currency strategist (DBS), stated to CNBC that this also occurred last year, when the country’s gross domestic product (GDP) first quarter statistics disappointed. He added, that corrections were made in both the dollar and also the Jones Industrial Average (DOW), but still the U.S. dollar went up during 2014’s second-half.
U.S. jobs data indicated weaker-than-expected statistics last Friday, putting a pause on its seemingly unstoppable positive rally. Payroll in the non-farm sector was recorded at 126,000 last March, significantly lower than expectations from a Reuters’ poll of a 245,000 rise, marking its lowest performance since December of 2013. The U.S. dollar index data experienced a 0.78% drop to 96.76 last Friday.
The Federal Reserve’s overall expectations that interest rates will increase against the ease on policies of many central banks worldwide are implementing because of the greenback surge being experienced.
The overall U.S. dollar index, a measurement used to know the U.S. dollar’s value compared to other foreign currencies increased to 21.2% since July. During Asia trading time mid-afternoon, the U.S. dollar index traded at 96.75, and it was valued at 1.0984 and 118.94 yen.