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Forex - U.S. Dollar Inches Down as Pound Rises

Published 16/10/2018, 16:23
© Reuters.  The U.S. dollar was down on Tuesday.
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Investing.com - The U.S. dollar was under pressure on Tuesday as sterling stayed near the session high.

The U.S. dollar index, which tracks the greenback against a basket of other currencies, was down 0.09% to 94.68 as of 11:23 AM ET (15:23 GMT).

The greenback remained under pressure despite upbeat jobs data showing the U.S. economy has continued to strengthen, increasing the chances of a Federal Reserve rate hike in December.

U.S. job openings rose to 7.14 million in August, according to the Labor Department’s monthly JOLTs report. A separate report showed that industrial production rose for the fourth month in September, rising 0.3%, but third-quarter growth slowed from the previous quarter’s momentum.

The dollar rose against the yen, with USD/JPY increasing 0.33% to 112.14. In times of uncertainty, investors tend to invest in the Japanese yen, which is considered a safe asset during periods of risk aversion.

Elsewhere, the pound continued to hold to earlier gains after data showed wage growth in the UK rose at its fastest pace in 10 years in August. Average earnings, excluding bonuses, rose by an annual 3.1% in the three months to August, the Office of National Statistics reported. It was the fastest increase since Jan. 2009.

GBP/USD surged 0.45% to 1.3211. The euro inched ahead, with EUR/USD rising 0.06% to 1.1586.

Meanwhile, the Australian dollar was higher, with AUD/USD up 0.14% to 0.7140, while NZD/USD jumped 0.64% to 0.6591 and USD/CAD decreased 0.42% to 1.2937.

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