ALBAWABA - The dollar retreated in cautious trading on Monday, September 4th, as investors assessed U.S. job data that indicated a slowdown, bolstering expectations that the Federal Reserve has likely reached the end of its monetary tightening cycle.
The dollar index, which measures the U.S. currency against a basket of currencies, dropped 0.048% to 104.18 but remained close to the two-month peak of 104.44 touched on August 25th. The index had risen 1.7% in August, ending a two-month losing streak.
Due to the closure of U.S. markets on Monday, liquidity is expected to be low, and traders may hesitate to make large bets.
Data released on Friday showed an acceleration in job growth in the United States in August. However, the unemployment rate jumped to 3.8%, and wage increases slowed.
The yen edged up 0.06% to 146.16 yen. The Asian currency has been trading around the psychologically important 145 level since mid-August as traders watch for any signs of authorities intervening to support the currency.
Japan intervened in the currency markets in September last year when the dollar rose above 145 yen, prompting the finance ministry to buy yen and push the exchange rate to around 140 yen.
The euro gained 0.06% to $1.078, while the British pound reached $1.2602, up 0.11% during the day.
The Australian dollar rose 0.2% to $0.6463 ahead of the Federal Reserve's policy meeting scheduled for Tuesday, where it is expected to maintain its policies.
Regarding cryptocurrencies, both Bitcoin increased by 0.95% to $25,997.50, and Ethereum rose by 0.67% to $1,638.30.
