US Dollar Stays Weak, Affected by Mixed Employment Data

Forex News

The US dollar fell to around 3-1/2-week lows against major currencies after US employment data showed a slower than expected wage growth. The dollar index dropped by 0.15% to 93.62.

On Friday, the US Labor Department reported, that average hourly earnings gained five cents, or 0.2% in June after increasing 0.3% in May. Nonfarm payrolls rise by a stronger-than-expected 213.000 in June. The US unemployment rate rose to 4% in June from an 18-year low of 3.8% in May.

The Chinese yuan strengthened against US dollar, with the USD/CNY pair down 0.31% at 6.6241. The yuan moved further away from an 11-month low of 6.7344 reached on July 3. The People’s Bank of China (PBOC) reported, that China's foreign exchange reserves unexpectedly rose $1.51 billion in June to $3.112 trillion, compared with a drop of $14.23 billion in May and the expectation of a drop of $10.6 billion in June to $3.10 trillion.