Dollar slips as US job openings fall; yen emerges stronger
Federal Reserve.
Traders on Wednesday added to bets that the Federal Reserve will deliver a half-a-percentage-point reduction at its next meeting, after data showed job openings in July fell to the lowest level in three and a half years.
Wednesday's data release comes ahead of Friday's U.S. payrolls report that could offer investors clues to the timing and pace of Federal Reserve interest rate cuts.
«The U.S. central bank must not keep interest rates too high much longer or it risks causing too much harm to employment, Atlanta Federal Reserve President Raphael Bostic said on Wednesday.
The Dollar Index, which measures the U.S. currency's strength against six major peers, was down 0.3% at 101.4. Against the yen, the dollar slipped 0.9% to 144.22 yen as global financial markets traded with a broadly risk-off tone.
Investors scurried to safer assets after a sharp sell-off on Wall Street in the prior session sparked by concerns about the U.S. economy and tech sector valuations.
Soft U.S. manufacturing data released on Tuesday helped fan worries about a hard landing for the world's biggest economy, with traders already nervous ahead of the crucial monthly payrolls numbers on Friday.
U.S. equity indexes slid on Tuesday, with AI chip giant Nvidia tumbling nearly 10%. Wall Street's main indexes opened lower on Wednesday.
The dollar, which tumbled more than 2% against a basket of currencies in August, has steadied since as rising volatility in global financial markets has lifted demand for safer currencies.
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