May 06, 2024 (MENAFN via COMTEX) --
(MENAFN) The dollar demonstrated resilience in Monday's trading session, maintaining stability in the wake of a report indicating a deceleration in job creation across the United States. This development has fueled speculation among investors regarding the possibility of an interest rate cut by the Federal Reserve later this year, as policymakers may seek to bolster economic momentum amidst signs of tepid employment growth.
Last week, the Japanes Yen witnessed a notable surge, marking its most robust weekly performance since December 2022. This uptrend was attributed to perceived interventions by the Japanese government aimed at stemming the currency's decline, particularly against the backdrop of its 34-year low against the dollar. However, the yen experienced a modest decline on Monday, slipping by 0.63 percent to reach 153.95 against the dollar.
The release of data on Friday revealed a slowdown in job expansion in the US during April, reinforcing expectations for subdued inflationary pressures while averting concerns of an impending economic downturn. Consequently, the dollar index, a gauge of the US currency's strength against six major counterparts, rebounded to 105.16 points following its recent dip to a three-week low.
Amidst these developments, market consensus suggests that the US central bank is poised to maintain its benchmark interest rate at 4.35 percent, a stance that has remained unchanged since November of the previous year. This steady approach reflects policymakers' efforts to navigate a delicate balance between sustaining economic growth and mitigating inflationary risks, amidst evolving global economic dynamics and domestic challenges.â??
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COMTEX_451979765/2604/2024-05-06T18:34:21
