Yahoo Finance Dollar off Lows on Upbeat U.S. Job Openings, Weaker Yen
Investing.com - The dollar was off its lows against its rivals Tuesday on upbeat U.S. labor market data and a weaker yen, amid waning safe-haven demand as Wall Street rallied.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.04% to 94.73.
The U.S. Labor Department's latest Job Openings and Labor Turnover Survey (JOLTs) report, a measure of labor demand, showed job openings in August improved to about 7.136 million, beating expectations of 6.945 million.
The rising number of openings comes as the unemployment rate fell to its lowest level in 49 years in September, reaffirming investor expectations that the U.S. labor market remained strong.
The dollar's charge higher, however, was stifled by ongoing strength in the pound following upbeat UK wage data.
GBP/USD rose 0.26% to $1.3187, but the pair retreated from a session high of $1.3236 amid expectations that the EU and the U.K. are unlikely to reach a Brexit deal this week.
EUR/USD rose 0.04% to $1.1586, as analysts warned that the European Union and Italy are headed for a "messy clash" over the country's plans to stick to its 2019 budget deficit at 2.4% of GDP.
"There is little to suggest that (Italy's) government will relent (on its budget proposals)," said Patrick O'Donnell, senior investment manager at Aberdeen Standard Investments. This makes a "messy clash almost inevitable now," he added.
Downside in the dollar was limited, however, by reduced demand for safe-haven yen as a slew of corporate earnings whetted investor appetite for risk.
USD/JPY rose 0.35% to Y112.17.
USD/CAD fell 0.55% to C$1.2921 as the loonie drew support from rising oil prices, which weighed on the pair.
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