Kiwi hit by food scare; Aussie slips

Kiwi hit by food scare; Aussie slips

U.S. payrolls report

The U.S. payrolls report was seen making the U.S. Federal Reserve more cautious about drawing down its huge economic stimulus programme, and cast some doubt on whether the Fed would start reducing its bond purchases in September.

A Reuters poll on Friday found that fewer U.S. primary dealers expect the Fed to begin reducing economic stimulus in September than they did a month ago, with dealers now split over whether the central bank will cut back on buying in September or in the following few months.

(Read more: Fearing Contamination, Chinese Pay More for Imported Infant Goods)

“We’ve seen a correction in the U.S. dollar back to the downside. In the very short term, given positioning, it may extend further,” said Callum Henderson, global head of FX research for Standard Chartered Bank in Singapore.

The dollar fell 0.3 percent to 98.67 yen. The euro held steady at $ 1.3281, clinging to its gains from Friday, when it rose 0.5 percent versus the dollar.

Currency speculators still have a net long position in the dollar, although they pared back such bets in the latest week, according to data from the U.S. Commodity Futures Trading Commission.

The value of the dollar’s net long position fell to $ 24.45 billion in the week ended July 30 from $ 28.69 billion the previous week.

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