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Dollar steady ahead of payrolls as yen hits 162.84, a 40-year low

Dollar steady ahead of payrolls as yen hits 162.84, a 40-year low

Asian stocks were mixed after softer U.S. jobs data reduced expectations of a near-term Federal Reserve rate hike, while the yen weakened again in holiday-thinned trading and intervention risks stayed in focus.

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Fact Check
The exact figure of 162.84 as a 40-year low for the yen and the 'dollar steady ahead of payrolls' framing are directly confirmed by the original Reuters wire story (KFGO) and independently by Qatar News Agency and other republications. The updated Reuters article shows the natural continuation once the actual jobs data landed. All core claim elements — yen at 162.84, 40-year low, dollar steady, focus on US payrolls, intervention jitters — are corroborated by multiple primary and secondary sources.
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Summary

Asian markets opened mixed after weaker-than-expected U.S. jobs data cooled expectations of an imminent Federal Reserve rate hike. MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.1% after two straight declines, while Japan’s Nikkei 225 fell 1% and South Korea’s Kospi remained under pressure following sharp losses in U.S. chipmakers. The June U.S. payrolls report showed job growth slowed sharply and previous months were revised lower, while the unemployment rate fell to 4.2% from 4.3% as workers left the labour force, pushing participation to its lowest level in more than five years. Fed funds futures then increased the implied probability that the Fed will keep rates steady at its September 15-16 meeting to 46.8%, up from 35.8% a day earlier. The dollar index held at 100.98 after a 0.5% drop on Thursday, and the dollar rose 0.2% to 161.435 yen as liquidity thinned ahead of the U.S. Independence Day market closure. Reuters also reported that Japanese authorities have adopted a new approach to their market operations, after a bout of sudden yen strength on Thursday. Brent crude slipped 0.4% to $71.49, gold rose 0.1% to $4,125.49, bitcoin fell 0.4% to $61,306.45 and ether declined 0.7% to $1,692.16.

Terms & Concepts
  • Fed funds futures: Derivatives that reflect market expectations for future U.S. central bank interest-rate decisions.
  • dollar index: A measure of the U.S. dollar’s value against a basket of six major currencies.
  • intervention: Official buying or selling in currency markets to influence an exchange rate.