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(Seoul=Yonhap Infomax) Sung Jin Kim – The US dollar posted a modest gain, extending its winning streak to a fifth consecutive session.
The greenback, which had come under pressure after US unemployment rose to its highest level in nearly four years in September, reversed course as New York equities tumbled sharply during intraday trading. The Japanese yen continued to weaken amid concerns over fiscal deterioration.
According to Yonhap Infomax (screen number 6411), as of 16:00 on the 20th (Eastern Time), the dollar-yen exchange rate stood at 157.577 yen, up 0.614 yen (0.391%) from the previous New York close of 156.963 yen.
The dollar-yen briefly approached the 157.9 yen level, flirting with the 158 yen threshold—its highest since mid-January.
The euro-yen rate rose 0.720 yen (0.398%) to 181.63 yen from 180.91 yen in the previous session. During intraday trading, the euro-yen briefly surpassed 182 yen for the first time ever. The yen has been hitting record lows against the euro since the euro’s introduction.
The euro-dollar rate slipped 0.00001 dollar (0.001%) to 1.15261 dollars from 1.15262 dollars, marking a fifth straight session of declines.
The dollar index (DXY), which tracks the greenback against six major currencies, rose 0.061 points (0.061%) to 100.251 from 100.190. At one point, it climbed to 100.380, the highest since late May.
The DXY swung sharply around the release of the US September employment report at 08:30 in New York. While nonfarm payrolls—the headline figure—rose much more than expected, the unemployment rate also increased, sending mixed signals to the market.
As market focus shifted to the unemployment rate, the DXY retreated to as low as 100.028. The probability of a Federal Reserve rate cut next month, as reflected in interest rate futures, rose to around 40%.
As US equities slumped later in the morning session, the DXY rebounded.
According to the US Department of Labor, nonfarm payrolls increased by 119,000 in September, more than double the market consensus of 50,000. However, the previous two months’ figures were revised down by 33,000. The August figure was revised from a 22,000 increase to a 4,000 decrease, marking a directional shift.
The unemployment rate for the same month rose 0.1 percentage point to 4.4% from the previous month, the highest since October 2021 (4.5%). Analysts had expected it to remain at 4.3%.
Juan Perez, Trading Director at Monex USA, said, “This is very mixed and seems overwhelming in that it presents an incomplete picture of the labor sector,” adding, “The revisions suggest a very high loss of job opportunities alongside modest employment growth.”
The yen, traditionally considered a safe-haven currency, failed to strengthen significantly even as US equities turned sharply lower. The dollar-yen rebounded after dipping near 157.3 yen.
Steve Englander, Head of G-10 FX Research at Standard Chartered, commented on the possibility of intervention by Japanese authorities: “There is a level, but we don’t know what it is,” adding, “Japanese authorities may wait until the market pushes the yen weaker before deciding to intervene.”
The pound-dollar rate rose 0.00204 dollar (0.156%) to 1.30700 dollars from the previous session. The offshore dollar-yuan (CNH) rate increased 0.0003 yuan (0.004%) to 7.1183 yuan.
sjkim@yna.co.kr
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