Dollar peaks on strong US jobs stats and global virus concerns
SINGAPORE- The dollar clocked in gains on Monday after positive jobs statistics indicated that US economy is strengthening. In line with this, weeks-long concerns of coronavirus contagion kept trade-exposed currencies neutral.
Figures released on Friday disclosed that US jobs growth increased last month, completely surpassing previous forecasts, with laudable progress and growth in construction sector- an indication that the economy is on a healthy track.
The Coronavirus death toll increased yet again during weekend, hitting the total recorded mortality rate made by the SARS epidemic. Records reached to 908 victims with infected individuals grew to a total of 40,171.
This negatively affected trade-exposed currencies with greenback performing far beyond other major and safe-haven currencies.
The Australian dollar reached low ground of $0.6657 in early trading session with previous quotation of $0.6680. The New Zealand dollar hit two consecutive months of low at $0.6397.
On Friday, the greenback traded $1.0948 and had placed neutral from hitting its four-month high of $1.0940 against euro. The pound was close to hitting its lowest since November at $1.2890.
There is an overriding theme of U.S. dollar strength against a backdrop where the data continues to suggest that the U.S. economy is faring better than others,” Rodrigo Catril of National Australia Bank.