Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Top Stories

Dollar edges higher after larger-than-expected rise in May payrolls

2023 06 02T020159Z 1 LYNXMPEJ5101O RTROPTP 4 USA BANKS SOFR - Global Banking | Finance

Dollar edges higher after larger-than-expected rise in May payrolls

(Updates prices, adds unemployment rate from report in paragraph 3, adds analyst quote in paragraph 7, adds comments from Fed officials in paragraphs 8 and 9, adds FX table)

By Hannah Lang

WASHINGTON (Reuters) – The U.S. dollar edged higher in choppy trading on Friday after May’s non-farm payrolls report showed employment surged but a jump in unemployment rate capped the gains.

The report showed that payrolls in the public and private sector increased by 339,000 in May, surging past expectations. Economists polled by Reuters expected non-farm payrolls to have increased by 190,000 in May, from April’s 253,000 rise.

Despite strong hiring, the unemployment rate rose to 3.7% from a 53-year low of 3.4% in April.

The dollar index, which measures the U.S. currency against six others, was last up 0.193% at 103.720.

On Thursday, the dollar index slid 0.62%, its worst day in almost a month, as the view took hold that the U.S. Federal Reserve will forgo an interest rate hike this month, which would diminish the greenback’s appeal to non-U.S. buyers.

Money markets are pricing in a roughly 29% chance of a June hike, down from near 70% earlier in the week.

“The challenge is that we’ve entered the Fed’s blackout period ahead of the [Federal Open Market Committee] meeting, which means it’s going to be hard to see a pushback from officials or any guidance from officials after this employment report,” said Marc Chandler, chief market strategist at Bannockburn Global Forex.

Philadelphia Fed President Patrick Harker said on Thursday it was “time to at least hit the stop button for one meeting and see how it goes”, referring to the Fed’s upcoming June 13-14 meeting.

A day earlier, Fed Governor Philip Jefferson said “skipping a rate hike at a coming meeting would allow the committee to see more data before making decisions about the extent of additional policy firming.”

Still, Fed officials aren’t ruling out a hike later in the summer, said City Index markets strategist Fiona Cincotta.

“I think that expectation could still keep the dollar supported,” she said. “Also, let’s not forget inflation is still high.”

The U.S. Senate’s passage of a bill Thursday night to suspend the debt ceiling and avert a disastrous default also removed a pillar of support for the dollar, which had paradoxically been a key beneficiary of the uncertainty because of its safe-haven status.

The euro was last down 0.2% at $1.07405, off its highest in around a week after a boost on Thursday from European Central Bank President Christine Lagarde, who said further policy tightening was necessary.

The Australian dollar surged after Australia’s independent wage-setting body announced that it would raise the minimum wage by 5.75% from July 1, stoking bets for another raise in rates next week. The Aussie rose by as much as 0.93% to $0.663, its strongest since May 24, and was last up 0.72% versus the greenback at $0.662.


Currency bid prices at 10:20AM (1420 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change


Dollar index 103.7200 103.5400 +0.19% 0.222% +103.7600 +103.3800

Euro/Dollar $1.0739 $1.0762 -0.20% +0.24% +$1.0779 +$1.0735

Dollar/Yen 139.5050 138.8150 +0.49% +6.39% +139.5100 +138.6000

Euro/Yen 149.81 149.36 +0.30% +6.78% +149.8800 +149.2600

Dollar/Swiss 0.9077 0.9055 +0.27% -1.82% +0.9085 +0.9037

Sterling/Dollar $1.2508 $1.2526 -0.12% +3.45% +$1.2544 +$1.2495

Dollar/Canadian 1.3435 1.3449 -0.08% -0.82% +1.3450 +1.3408

Aussie/Dollar $0.6619 $0.6573 +0.72% -2.88% +$0.6638 +$0.6572

Euro/Swiss 0.9746 0.9743 +0.03% -1.51% +0.9760 +0.9731

Euro/Sterling 0.8583 0.8592 -0.10% -2.95% +0.8599 +0.8579

NZ $0.6079 $0.6070 +0.16% -4.24% +$0.6111 +$0.6060


Dollar/Norway 11.0080 11.0480 -0.28% +12.26% +11.0620 +10.9640

Euro/Norway 11.8235 11.8970 -0.62% +12.67% +11.9295 +11.8038

Dollar/Sweden 10.7580 10.8021 -0.70% +3.36% +10.8170 +10.6850

Euro/Sweden 11.5484 11.6296 -0.70% +3.56% +11.6364 +11.5097

(Reporting by Hannah Lang in Washington; Additional reporting by Amanda Cooper and Dhara Ranasinghe in London and Kevin Buckland in Tokyo; Editing by Mark Heinrich, Mark Potter, Andrew Heavens, Emelia Sithole-Matarise and Sriraj Kalluvila)

Global Banking & Finance Review


Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!

By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review │ Banking │ Finance │ Technology. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post