HONG KONG; The dollar struggled to recover sharp losses in Asia Monday after last week’s disappointing US jobs report reduced the chances of an interest rate hike, while the stronger yen sent Japan’s Nikkei tumbling.
The US labour department said Friday that May saw the world’s top economy create the fewest number of jobs in six years, slashing expectations borrowing costs will rise any time soon.
The news caught off-guard traders who had been expecting the Fed to announce a rise no later than July, with the central bank itself having hinted as such just last month.
The dollar was sent plunging two percent against both the yen and the euro and it was unable to break out in early exchanges Monday.
The greenback bought 106.73 yen from 106.63 yen in New York but it is still sharply down from levels above 109 yen before the report. The euro dipped to $1.1348 from $1.1364 but was also well up from the $1.1154 reached Thursday.
