Dollar shines on US economic resilience; Aussie tumbles after employment data
dollar pushed the yen deeper into intervention territory on Thursday as a resilient U.S. economy underscored the need for higher-for-longer interest rates, while a strikingly ultra-dovish Bank of Japan struggled to defend its policy stance. The Australian dollar tumbled after the country's July employment unexpectedly fell while its jobless rate ticked up more than expected.
The Aussie sank nearly 1% after the release of the figures, dragging the New Zealand dollar alongside it. The yen bottomed out at 146.565 per dollar in early Asia trade, its lowest level since November, having come under renewed pressure as a result of interest rate differentials between the U.S. and Japan.
Although most money markets expect the Federal Reserve to keep interest rates on hold in September, with some betting that the central bank may already have completed its tightening cycle, a recent run of resilient U.S. economic data has reinforced the view that interest rates will remain at restrictive levels for some time. Data on Wednesday showed that U.S.
single-family homebuilding surged in July and permits for future construction rose, while a separate report revealed production at U.S. factories unexpectedly rebounded last month. «We've got the U.S.
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