(Updates headline and prices throughout, adds analyst comment,
and background on other currencies)
By Chibuike Oguh
NEW YORK, Oct 10 (Reuters) - The U.S. dollar edged lower
against the yen on Thursday after data showed signs of labor
market weakness and a higher-than-expected rise in U.S.
inflation in September even though prices were on a downward
trend, allowing the Federal Reserve to keep cutting interest
rates.
Labor Department data on Thursday showed that the consumer
price index increased 0.2% in September. In the 12 months
through September the CPI climbed 2.4%, which was the smallest
year-on-year rise since February 2021.
Economists polled by Reuters had forecast the CPI edging
up 0.1% and rising 2.3% year-on-year.
Other data from the Labor Department also showed that
the number of Americans
seeking unemployment benefits
surged last week, driven partly by Hurricane Helene and
furloughs at Boeing (BA).
Initial claims for state unemployment benefits increased
to 258,000 last week, compared with a Reuters analyst estimate
of 230,000 claims.
The greenback was down 0.39% at 148.71 yen after rising to
as high as 149.58 yen for the first time since Aug. 2.
The euro dropped to its lowest since Aug. 9 against
the dollar and was down 0.17% on the day at $1.092.
The dollar index, which measures the currency against
six key rivals including the yen and euro, was up slightly by
0.1% to 102.97 in choppy trading after hitting its highest since
August 15.
"The claims number dominated the story and that's driven
bond yields lower because it's reminded the market that the Fed
actually has some concerns about the employment story," said
John Velis, FX and macro strategist at BNY in Boston.
Traders are betting a nearly 90% chance on the Fed
cutting rates by 25 basis points at its next policy decision on
Nov. 7, and a 9% probability of no change, the CME Group's
FedWatch Tool showed. The yield on benchmark U.S. 10-year notes
rose 3.3 basis points to 4.1%.
"We had such a good September job print that this kind of
swings back in the other direction and has taken out some of
that restrictive Fed pricing, or let me say it's put in some
more expectations of a rate cut for the November 7th meeting,"
Velis added.
The U.S. economy gained 254,000 jobs in September and
the unemployment rate fell to 4.1%, Labor Department data
had showed
on Friday.
The risk-sensitive Australian dollar was up
0.05% to $0.6722. It earlier rose more than 0.3% on the back of
an equity rally in top trading partner China as the East Asian
nation's central bank launched a swap programme aimed at
supporting the stock market.
China's finance ministry is due to hold a highly anticipated
news conference on fiscal policy on Saturday. The dollar
was flat to 7.093 versus the offshore Chinese yuan.
In cryptocurrencies, bitcoin gained 0.28% to
$60,541.29. Ethereum rose 1% to $2,377.29.
Currency bid prices at 10 October? 02:51 p.m. GMT
Description RIC Last U.S. Close Previous Session Pct Change YTD Pct High Bid Low Bid
Dollar index 102.98 102.88 0.11% 1.59% 103.06 102.71
Euro/Dollar 1.0921 1.094 -0.16% -1.05% $1.0955 $1.0909
Dollar/Yen 148.76 149.28 -0.26% 5.56% 149.49 148.4
Euro/Yen 1.0921? 163.31 -0.51% 4.4% 163.6 162.24
Dollar/Swiss 0.858 0.8609 -0.29% 2% 0.8615 0.8559
Sterling/Dollar 1.3049 1.3075 -0.19% 2.55% $1.3094 $1.3011?
Dollar/Canadian 1.3761 1.3711 0.38% 3.82% 1.3768 1.3702
Aussie/Dollar 0.6721 0.6719 0.07% -1.39% $0.6743 $0.6702
Euro/Swiss 0.9371 0.9416 -0.49% 0.9% 0.9419 0.9366
Euro/Sterling 0.8367 0.8367 NOT AVAILABLE% -3.47% 0.8385 0.8355
NZ Dollar/Dollar 0.6075 0.6063 0.21% -3.85% $0.6097 0.605
Dollar/Norway 10.757? 10.7767 -0.18% 6.14% 10.7954 10.7348
Euro/Norway 11.7492 11.79 -0.35% 4.68% 11.8034 11.7375
Dollar/Sweden 10.4043 10.3946 0.09% 3.35% 10.4137 10.3697
Euro/Sweden 11.3637 11.3738 -0.09% 2.14% 11.3825 11.3524
(Reporting by Chibuike Oguh in New York; additional reporting
by Harry Robertson and Kevin Buckland; Editing by Chizu
Nomiyama)
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