Dollar slides as US job data dents Fed tightening outlook; yuan on back foot

TOKYO (Reuters): The dollar slid almost half a per cent against the euro and the yen on Monday after soft US payrolls data fueled speculation that the Federal Reserve may stop raising interest rates after a highly likely move next week.

The Chinese yuan dipped after weak trade and inflation data over the weekend, while the British pound hit an 11-week low against the euro as Prime Minister Theresa May’s deal to exit the European Union looks set to be rejected by parliament on Tuesday.

“We have rising tensions between the United States and China over Huawei and the Brexit vote in the UK parliament. The risk-off mood is likely to prevail for now,” said director of forex at Societe Generale.

The dollar fell 0.4% against the yen to 112.30, edging near Thursday’s 5 1/2-week low of 112.23.

Source: Daily FT