The dollar price scripted history by going past two and a half year high yen early morning on Monday in the Asian market. Interestingly, there was no change in the market’s process after the ongoing speculation of tapering by the US Federal Reserves. It is going to start in November 2021.
The US Dollar Index edged up to 94.093 by 0.01 per cent at 2:54 AM GMT(10:54 PM ET).
Meanwhile, the USD/JPY pair inched up to 122.56 by 0.30 per cent. Notably, it remained above the 112 mark, which is satisfactory for investors.
The AUD/USD pair rose to 0.7326 by 0.27 per cent as Sydney in Australia got re-opened after a lockdown of 100 days. However, NZD/USD plunged to 0.6935 by 0.04 per cent.
The USD/CNY lost its sheen to 6.4373 by 0.10 per cent. However, GBP/USD surged to 1.3645 by 0.25 per cent.
It is noticeable that the report on jobs was disappointing. The unemployment rate reached 4.8 per cent in September. The non-farm payrolls were at 194,000. The perils of labour shortage still loom large. Moreover, fanning inflation is another concern. Also, the Fed is likely to start the asset tapering within 2021.
On the other hand, with the release of the data, bond yields jumped. The benchmark ten-year treasuries yield hit the 4-month high of 1.617.
Notably, further data by the US will be released on Wednesday. It will include the consumer price index. As per analysts, if the data goes higher than the expectations, These speculations are higher than the interest rates earlier post tapering. Thus, can ignite further gains for the US currency.