Dollar Weakens as Yen Gains Amid Shifting Economic Landscape

Dollar slips as US job openings fall; yen lifted by safe haven bid

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. "Stock market instability and dropping U.S. yields have made the yen a strong performer," said Marc Chandler, chief market strategist at Bannockburn Global Forex. The dollar index was about 1% higher than its late August low of 100.51. "The USD has rebounded but is afraid to rebound any further until it gets more information," Brad Bechtel, global head of FX at Jefferies, said in a note. "After Friday's print we'll either be 100 or lower or 104 or higher in DXY by my reckoning," he said. Economists surveyed by Reuters expect Friday's report to show an increase of 165,000 U.S. jobs in August, up from a rise of 114,000 in July. Ahead of that, investors will also keep a close eye on jobless claims on Thursday. The euro was 0.3% higher at $1.1077, recovering from marginal declines earlier in the session. Euro zone business activity received a boost from France hosting the Olympic Games last month but the malaise in the bloc is likely to return once the Paralympics wraps up as demand remains weak, a survey showed. The Canadian dollar rose 0.2% against its U.S. counterpart on Wednesday after the Bank of Canada cut its key policy rate by 25 basis points to 4.25% as forecast but expressed concern that weaker-than-expected growth might mean inflation falls too quickly. Sterling was 0.3% higher at $1.316, after weakening to a low of $1.31010 overnight. With investors avoiding riskier assets, cryptocurrencies faltered on Tuesday. Bitcoin fell 3% to $56,400 and ether slipped about 2.5% to $2,400. (Reporting by Saqib Iqbal Ahmed; Additional reporting by Kevin Buckland and Sruthi Shankar; Editing by Christina Fincher, Alison Williams and Angus MacSwan)

Safe-haven yen gains as edgy markets face US jobs test

U.S. equity indexes slid on Tuesday, with AI chip giant Nvidia tumbling nearly 10%. The risk-off mood spilled over to Asia and Europe on Wednesday. "It's a bit reminiscent of the early August selloff where you didn't really need a catalyst. It's just that you're at the highs in risky assets," said Alex Jekov, head of G10 FX strategy at BNP Paribas. "The dollar is softer versus low-yielding currencies because they are getting a bid from the risk-off environment. But what is different from August is that U.S. rates aren't participating quite as much. It seems to be mainly an equities story." The yen strengthened as much as 0.4% to 144.89 per dollar before last trading up about 0.2% at 145.195 as of 0902 GMT, following a 1% rally overnight. Dollar/yen hit a multi-month low of 141.68 on August 5 after a surprisingly weak U.S. payrolls data and an interest rate hike from the Bank of Japan triggered a massive unwind of yen-funded carry trades. Risks to the U.S. soft-landing scenario - which had been gaining traction recently in markets - saw traders raise the chances of a 50-basis point Federal Reserve interest rate cut this month to 37% from 30% a day earlier, according to the CME Group's FedWatch Tool. Economists surveyed by Reuters expect Friday's report to show an increase of 165,000 U.S. jobs in August, up from a rise of 114,000 in July. Ahead of that, investors will keep a close eye on job openings data on Wednesday and jobless claims on Thursday. U.S. markets were closed for the Labor Day holiday on Monday and came back Tuesday to a weak Institute for Supply Management survey that suggested factory activity in the country would remain subdued for a while. "That was supposed to show a gain, but actually showed a decline, and has made people wonder once more about the Fed possibly being too late to act," said Sam Stovall, chief investment strategist at CFRA. The Swiss franc, another safe haven, strengthened about 0.2% to 0.8487 per dollar. The euro was flat at $1.10525, recovering from marginal declines earlier in the session. Euro zone business activity received a boost from France hosting the Olympic Games last month but the malaise in the bloc is likely to return once the Paralympics wraps up as demand remains weak, a survey showed. Sterling was flat at $1.3117, after weakening 0.23% overnight, while the Aussie slipped a further 0.1% to $0.67035, extending Tuesday's 1.2% tumble. Cryptocurrencies also faltered, with bitcoin and ether slipping about 2.4% each. (Reporting by Kevin Buckland and Sruthi Shankar; Editing by Sonali Paul, Shri Navaratnam, Muralikumar Anantharaman and Christina Fincher)

Dollar slips as US job openings fall; yen emerges stronger

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 currenciesThe dollar eased against most major currencies after U.S. job openings data for July pointed to a softening labor market, tilting the odds further in favor of larger interest rate cuts by the U.S. 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. "Stock market instability and dropping U.S. yields have made the yen a strong performer," said Marc Chandler, chief market strategist at Bannockburn Global Forex. The dollar index was about 1% higher than its late August low of 100.51. "The USD has rebounded but is afraid to rebound any further until it gets more information," Brad Bechtel, global head of FX at Jefferies, said in a note. "After Friday's print we'll either be 100 or lower or 104 or higher in DXY by my reckoning," he said. Economists surveyed by Reuters expect Friday's report to show an increase of 165,000 U.S. jobs in August, up from a rise of 114,000 in July. Ahead of that, investors will also keep a close eye on jobless claims on Thursday. The euro was 0.3% higher at $1.1077, recovering from marginal declines earlier in the session. Euro zone business activity received a boost from France hosting the Olympic Games last month but the malaise in the bloc is likely to return once the Paralympics wraps up as demand remains weak, a survey showed. The Canadian dollar rose 0.2% against its U.S. counterpart on Wednesday after the Bank of Canada cut its key policy rate by 25 basis points to 4.25% as forecast but expressed concern that weaker-than-expected growth might mean inflation falls too quickly. Sterling was 0.3% higher at $1.316, after weakening to a low of $1.31010 overnight. With investors avoiding riskier assets, cryptocurrencies faltered on Tuesday. Bitcoin fell 3% to $56,400 and ether slipped about 2.5% to $2,400

Yen firms as Wall Street sell-off unsettles investors

U.S. equity indexes slid on Tuesday, with AI chip giant Nvidia tumbling nearly 10%. The risk-off mood spilled over to Asia and Europe on Wednesday. "It's a bit reminiscent of the early August sell-off where you didn't really need a catalyst. It's just that you're at the highs in risky assets," said Alex Jekov, head of G10 FX strategy at BNP Paribas. "The dollar is softer versus low-yielding currencies because they are getting a bid from the risk-off environment. But what is different from August is that U.S. rates aren't participating quite as much. It seems to be mainly an equities story." The yen strengthened as much as 0.4% to 144.89 per dollar before last trading up about 0.3% at 144.95 as of 1144 GMT, following a 1% rally overnight. Dollar/yen hit a multi-month low of 141.68 in early August after a surprisingly weak U.S. payrolls data and an interest rate hike from the Bank of Japan triggered a massive unwind of yen-funded carry trades. Risks to the U.S. soft-landing scenario - which had been gaining traction in markets - saw traders raise the chances of a 50-basis point Federal Reserve interest rate cut this month to 37% from 30% a day earlier, according to the CME Group's FedWatch Tool. Economists surveyed by Reuters expect Friday's report to show an increase of 165,000 U.S. jobs in August, up from a rise of 114,000 in July. Ahead of that, investors will keep a close eye on job openings data on Wednesday and jobless claims on Thursday. U.S. markets were closed for the Labor Day holiday on Monday and came back on Tuesday to a weak Institute for Supply Management survey that suggested factory activity in the country would remain subdued for a while. "That was supposed to show a gain, but actually showed a decline, and has made people wonder once more about the Fed possibly being too late to act," said Sam Stovall, chief investment strategist at CFRA. The Swiss franc, another safe haven, strengthened by as much as 0.3% to 0.84735 per dollar before trading nearly flat. The euro was little changed at $1.10470, recovering from marginal declines earlier in the session. Euro zone business activity received a boost from France hosting the Olympic Games last month but the malaise in the bloc is likely to return once the Paralympics wraps up as demand remains weak, a survey showed. Sterling was also nearly flat at $1.31125, after weakening 0.2% overnight. Cryptocurrencies faltered, with bitcoin and ether slipping about 2.6% each. (Reporting by Kevin Buckland and Sruthi Shankar; Editing by Christina Fincher and Alison Williams)

Safe-haven yen gains as edgy markets face US jobs test

The Japanese yen and the Swiss franc firmed against the dollar on Wednesday as investors scurried to safer assets after a sharp selloff on Wall Street in the prior session sparked by concerns about the U.S. economy and tech sector valuations. The catalyst was ostensibly some soft U.S. manufacturing data, which fanned worries about a hard landing for the world's biggest economy, with traders already nervous ahead of crucial monthly payrolls data on Friday. U.S. equity indexes slid on Tuesday, with AI chip giant Nvidia tumbling nearly 10%. The risk-off mood spilled over to Asia and Europe on Wednesday. "It's a bit reminiscent of the early August selloff where you didn't really need a catalyst. It's just that you're at the highs in risky assets," said Alex Jekov, head of G10 FX strategy at BNP Paribas. "The dollar is softer versus low-yielding currencies because they are getting a bid from the risk-off environment. But what is different from August is that U.S. rates aren't participating quite as much. It seems to be mainly an equities story." The yen strengthened as much as 0.4% to 144.89 per dollar before last trading up about 0.2% at 145.195 as of 0902 GMT, following a 1% rally overnight. Dollar/yen hit a multi-month low of 141.68 on August 5 after a surprisingly weak U.S. payrolls data and an interest rate hike from the Bank of Japan triggered a massive unwind of yen-funded carry trades. JOBS FOCUS Risks to the U.S. soft-landing scenario - which had been gaining traction recently in markets - saw traders raise the chances of a 50-basis point Federal Reserve interest rate cut this month to 37% from 30% a day earlier, according to the CME Group's FedWatch Tool. Economists surveyed by Reuters expect Friday's report to show an increase of 165,000 U.S. jobs in August, up from a rise of 114,000 in July. Ahead of that, investors will keep a close eye on job openings data on Wednesday and jobless claims on Thursday. U.S. markets were closed for the Labor Day holiday on Monday and came back Tuesday to a weak Institute for Supply Management survey that suggested factory activity in the country would remain subdued for a while. "That was supposed to show a gain, but actually showed a decline, and has made people wonder once more about the Fed possibly being too late to act," said Sam Stovall, chief investment strategist at CFRA. The Swiss franc, another safe haven, strengthened about 0.2% to 0.8487 per dollar. The euro was flat at $1.10525, recovering from marginal declines earlier in the session. Euro zone business activity received a boost from France hosting the Olympic Games last month but the malaise in the bloc is likely to return once the Paralympics wraps up as demand remains weak, a survey showed. Sterling was flat at $1.3117, after weakening 0.23% overnight, while the Aussie slipped a further 0.1% to $0.67035, extending Tuesday's 1.2% tumble. Cryptocurrencies also faltered, with bitcoin and ether slipping about 2.4% each. (Reporting by Kevin Buckland and Sruthi Shankar; Editing by Sonali Paul, Shri Navaratnam, Muralikumar Anantharaman and Christina Fincher)

Yen firms as Wall Street sell-off unsettles investors

* Dollar slips ahead of U.S. payrolls data * Safe-haven yen and Swiss franc rise * Cryptocurrencies under pressure (Updates prices as of 1144 GMT) By Kevin Buckland and Sruthi Shankar Sept 4 (Reuters) - The Japanese yen firmed against the dollar on Wednesday as 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. The catalyst was ostensibly some soft U.S. manufacturing data, which fanned 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%. The risk-off mood spilled over to Asia and Europe on Wednesday. "It's a bit reminiscent of the early August sell-off where you didn't really need a catalyst. It's just that you're at the highs in risky assets," said Alex Jekov, head of G10 FX strategy at BNP Paribas. "The dollar is softer versus low-yielding currencies because they are getting a bid from the risk-off environment. But what is different from August is that U.S. rates aren't participating quite as much. It seems to be mainly an equities story." The yen strengthened as much as 0.4% to 144.89 per dollar before last trading up about 0.3% at 144.95 as of 1144 GMT, following a 1% rally overnight. Dollar/yen hit a multi-month low of 141.68 in early August after a surprisingly weak U.S. payrolls data and an interest rate hike from the Bank of Japan triggered a massive unwind of yen-funded carry trades. JOBS FOCUS Risks to the U.S. soft-landing scenario - which had been gaining traction in markets - saw traders raise the chances of a 50-basis point Federal Reserve interest rate cut this month to 37% from 30% a day earlier, according to the CME Group's FedWatch Tool. Economists surveyed by Reuters expect Friday's report to show an increase of 165,000 U.S. jobs in August, up from a rise of 114,000 in July. Ahead of that, investors will keep a close eye on job openings data on Wednesday and jobless claims on Thursday. U.S. markets were closed for the Labor Day holiday on Monday and came back on Tuesday to a weak Institute for Supply Management survey that suggested factory activity in the country would remain subdued for a while. "That was supposed to show a gain, but actually showed a decline, and has made people wonder once more about the Fed possibly being too late to act," said Sam Stovall, chief investment strategist at CFRA. The Swiss franc, another safe haven, strengthened by as much as 0.3% to 0.84735 per dollar before trading nearly flat. The euro was little changed at $1.10470, recovering from marginal declines earlier in the session. Euro zone business activity received a boost from France hosting the Olympic Games last month but the malaise in the bloc is likely to return once the Paralympics wraps up as demand remains weak, a survey showed. Sterling was also nearly flat at $1.31125, after weakening 0.2% overnight. Cryptocurrencies faltered, with bitcoin and ether slipping about 2.6% each. (Reporting by Kevin Buckland and Sruthi Shankar; Editing by Christina Fincher and Alison Williams) Reuters

Safe-haven yen gains as edgy markets face US jobs test

Holograms are seen on the new Japanese 10,000 yen banknote as the new note is displayed at a currency museum of the Bank of Japan in Tokyo. -- Reuters file The Japanese yen and the Swiss franc firmed against the dollar on Wednesday as investors scurried to safer assets after a sharp selloff on Wall Street in the prior session sparked by concerns about the US economy and tech sector valuations. The catalyst was ostensibly some soft US manufacturing data, which fanned worries about a hard landing for the world's biggest economy, with traders already nervous ahead of crucial monthly payrolls data on Friday. US equity indexes slid on Tuesday, with AI chip giant Nvidia tumbling nearly 10 per cent. The risk-off mood spilled over to Asia and Europe on Wednesday. "It's a bit reminiscent of the early August selloff where you didn't really need a catalyst. It's just that you're at the highs in risky assets," said Alex Jekov, head of G10 FX strategy at BNP Paribas. "The dollar is softer versus low-yielding currencies because they are getting a bid from the risk-off environment. But what is different from August is that US rates aren't participating quite as much. It seems to be mainly an equities story." The yen strengthened as much as 0.4 per cent to 144.89 per dollar before last trading up about 0.2 per cent at 145.195 as of 0902 GMT, following a 1 per cent rally overnight. Dollar/yen hit a multi-month low of 141.68 on August 5 after a surprisingly weak US payrolls data and an interest rate hike from the Bank of Japan triggered a massive unwind of yen-funded carry trades. Jobs focus Risks to the US soft-landing scenario -- which had been gaining traction recently in markets -- saw traders raise the chances of a 50-basis point Federal Reserve interest rate cut this month to 37 per cent from 30 per cent a day earlier, according to the CME Group's FedWatch Tool. Economists surveyed by Reuters expect Friday's report to show an increase of 165,000 US jobs in August, up from a rise of 114,000 in July. Cryptocurrencies also faltered, with bitcoin and ether slipping about 2.4 per cent each.