Investing.com - The dollar slipped against a currency basket on Monday after the latest U.S. jobs report showed that while jobs growth remained strong, boosting risk appetite, wage growth slowed, tempering expectations for a faster pace of rate hikes this year.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was at 89.94 by 04:54 AM ET (08:54 AM GMT), down 0.18% for the day.
The Labor Department reported Friday that the U.S. economy added 313,000 jobs last month, but average hourly earnings rose by just 0.1% in February.
The strong jobs growth boosted global risk appetite, while the slowdown in wage growth dampened expectations for four rate hikes by the Federal Reserve this year, a negative for the dollar, which tends to become more attractive to yield-seeking investors when borrowing costs rise.
The euro pushed higher, with EUR/USD rising 0.18% to 1.2329.
Gains in the single currency were held in check after European Central Bank President Mario Draghi downplayed a decision to drop the easing bias from last week’s rate statement and warned that increasing protectionism posed a threat to the outlook for growth in the euro area.
Sterling also gained ground against the greenback, with USD/GBP climbing 0.17% to 1.3877.
Against the yen, the dollar was lower, with USD/JPY down 0.24% to 106.54.
Demand for the yen was boosted amid concerns over a growing cronyism scandal linked to the Japanese prime minister and his wife involving the sale of public land.
The safe haven yen tends to rise in times of market uncertainty.
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