It is, in part, thanks to strong U.S. August jobs data and amid fears of a possible escalation in the China-U.S. trade conflict.
“If there are any signs that the U.S. economy is finally hit by its own protectionist moves, then I think that’s the start of full-blown risk aversion,” said Masafumi Yamamoto, chief currency strategist at Mizuho Securities. “This will at least lead to the weakness of the dollar against the yen,” Yamamoto said.
The dollar index .DXY, that measures the American currency against a basket of six other currencies, was flat at 95.381. The index advanced more than 0.3% on Friday after data showed U.S. job growth picked up in August and wages recorded their largest annual gain in more than almost a decade.
The strong data further supported the prospect of faster rate rises by the Federal Reserve. The Fed is all but certain to raise rates a third time this year in late September.
