SINGAPORE/LONDON—The dollar regained ground on Monday, partly recovering from a knee-jerk reaction to Friday data showing U.S. job gains were the smallest in two-and-a-half years, while disappointing inflation figures in China weighed on the yuan and proxies.
The dollar index, which tracks the greenback against a basket of major peers, was up 0.15 percent at 102.44 having tumbled 0.87 percent on Friday, after U.S. nonfarm payrolls increased 209,000 in June, missing market expectations for the first time in 15 months.
While details in the employment report reflecting persistently strong wage growth underscored market pricing of a further rate hike later this month, the data helped reassure markets that an end to the Federal Reserve’s programme of rate hikes is at least near, even if once-expected cuts later in 2023 now seem unlikely….