Dollar down slightly as markets assess US jobs report

Dollar fell slightly against other major currencies today, Friday, as problems in the banking sector increased expectations of a US interest rate cut later in the year, while all eyes are on an monthly US jobs report.

According to “Reuters”, the British pound rose to the highest level in almost a year, and the euro compensated for some of the losses it incurred after the European Central Bank meeting on Thursday, and the yen is heading for its first weekly gain in nearly a month, benefiting from the demand for safe havens. ..

The dollar index, which measures the value of the US currency against other major currencies, fell slightly to 101.31, heading for its second weekly decline.

Growing expectations of a US interest rate cut later in the year dampened expectations for the dollar, while fresh turmoil among US banks raised recession risks and speculation that the Federal Reserve may soon reverse course. ..

The central bank raised interest rates by a quarter of a percentage point on Wednesday, signaling that it may halt its aggressive monetary tightening campaign

US bank stocks fell this week with the collapse of First Republic Bank and Los Angeles-based BacWest Bancorp announcing that it was examining the available strategic options.

The April non-farm payrolls report, due later on Friday, may provide fresh direction to the currency markets. Experts polled by Reuters expected that the US economy would create 180,000 new jobs, compared to 236,000 in March.

The dollar settled at 134.26 yen, but the Japanese currency is heading for a weekly gain of 1.5 percent, after incurring losses for three consecutive weeks.

The British pound jumped to $1.2633, reaching its highest level in nearly a year. It also rose about 0.2 percent, to 87.44 pence per euro

The euro rose slightly to $1.1021. The single European currency came under pressure on Thursday after the European Central Bank slowed the pace of interest rate increases with a 25 basis point hike, indicating that previous moves had an impact on the economy.

The Australian and New Zealand dollars were among the biggest beneficiaries of the decline in the US currency, as they touched their highest levels in several weeks, and then the New Zealander pared its gains later.

But the dollar rose in the latest transactions by 0.64 percent to 0.8915 Swiss francs.