Dollar gains most in three weeks
The government is currently in negotiations with the IMF for the next loan tranche of $1 billion. PHOTO: FILE
The dollar made its biggest daily gain in three weeks on Friday after a US government report showed jobs grew more than expected in July, pushing up bond yields and adding to arguments for faster tightening of US monetary policy.
The dollar index against major currencies was up 0.6% at 12:40 pm ET (1640 GMT). Against the safe havens of the Japanese yen and Swiss franc, the dollar had its biggest daily gains since June, reflecting a risk-on tone as well as the appeal of higher US interest rates.
Read Rupee weakens against dollar
The report on US nonfarm payrolls showed jobs increased by 943,000 in July compared with the 870,000 forecast by economists polled by Reuters.
The news rekindled dollar momentum, grounded in the middle of the week by statements from Federal Reserve Vice Chair Richard Clarida suggesting that conditions for hiking interest rates might be met as soon as late 2022.
Published in The Express Tribune, August 8th, 2021.
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