# Dollar dips as job openings fall, Fed meeting in focus Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-05-03 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Dollar Dips as Job Openings Fall, Fed Meeting in Focus Meta Description: The dollar fell as U.S. job openings declined, ahead of a Fed meeting. Job layoffs rise, raising concerns. Eurozone banks tighten credit, affecting euro rate. URL: https://financedigest.com/dollar-dips-as-job-openings-fall-fed-meeting-in-focushtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-05-02t084837z3lynxmpej41028rtroptp4croatia-euro-1736814076655-compressed.jpg) # Dollar dips as job openings fall, Fed meeting in focus By Karen Brettell NEW YORK (Reuters) – The dollar fell Tuesday after data showed that U.S. job openings fell in March, a day before the Federal Reserve is expected to [hike interest rates by an additional 25 basis points](https://www.financedigest.com/fed-officials-still-leaning-to-75-basis-point-rate-hike-in-july.html "Fed officials still leaning to 75-basis-point rate hike in July"). U.S. job openings fell for a [third straight month](https://www.financedigest.com/sentiment-among-german-exporters-falls-for-third-month-in-a-row-ifo.html "Sentiment among German exporters falls for third month in a row -Ifo") and layoffs increased to the highest level in more than two years, suggesting some softening in the labor market that could aid the Fed’s fight against inflation. The U.S. Commerce Department also said that factory orders rose by 0.9% in March, below [expectations for a 1.1% gain](https://www.financedigest.com/cherry-picker-crane-market-is-expected-to-experience-substantial-gains-with-projections-around-6-to-8-cagr-from-2021-to-2031.html "Cherry Picker Crane Market is expected to experience substantial gains, with projections around 6% to 8% CAGR from 2021 to 2031"). The [data comes as investors try to gauge whether the Fed is likely to pause rate hikes](https://www.financedigest.com/soft-lending-and-inflation-data-pave-way-for-smaller-ecb-hike.html "Soft lending and inflation data pave way for smaller ECB hike") when it concludes a two-day meeting on Wednesday, or if further increases are possible if inflation remains high. “The big question is does the [Fed signal](https://www.financedigest.com/stocks-shed-gains-treasury-yields-jump-as-fed-signals-rate-hikes-could-come-soon.html "Stocks shed gains, Treasury yields jump as Fed signals rate hikes could come ‘soon’") that policy is restrictive enough, or provide enough hints for the market to think that we’re not going to require the further tightening of policy,” said Edward Moya, senior market analyst at OANDA in New York. The [dollar index](https://www.financedigest.com/dollar-index-jumps-after-u-s-retail-sales-show-surprise-rebound.html "Dollar index jumps after U.S. retail sales show surprise rebound") fell 0.22% to 101.93 after earlier reaching 102.40, the highest since April 11. The euro rose 0.23% against the greenback to $1.1001, after earlier dipping to $1.0940, the [lowest since](https://www.financedigest.com/britains-cost-of-living-crisis-sends-sterling-to-lowest-since-mid-july.html "Britain’s cost of living crisis sends sterling to lowest since mid-July") April 21. The single currency fell after data showed that euro zone [banks are turning off the credit taps and a key](https://www.financedigest.com/training-is-key-to-the-digital-evolution-of-banks.html "Training is key to the digital evolution of banks") gauge of inflation is finally falling, boosting the case for a smaller rate increase by the European Central Bank on Thursday. The ECB has been seen as possibly [hiking rates by 50 basis points this week](https://www.financedigest.com/marketmind-rba-shock-hike-starts-huge-week-for-central-banks.html "Marketmind: RBA shock hike starts huge week for central banks"). The single currency has risen since mid-March on expectations that the [interest rate](https://www.financedigest.com/boes-pill-sees-need-for-further-interest-rate-rises.html "BoE’s Pill sees need for further interest rate rises") differential with the U.S. dollar will continue to shrink. The expected forward US rate advantage versus the euro is the lowest in 10 years,” Steve Englander, head, [global G10 FX research and North America macro strategy at Standard Chartered Bank](https://www.financedigest.com/open-banking-the-real-step-change-for-the-global-payments-industry.html "Open banking: The real step change for the global payments industry") said in a note. And “euro-area equities are experiencing the most extended outperformance versus US equities in a decade.” The [Aussie dollar](https://www.financedigest.com/aussie-dollar-firm-as-bonds-tumble-yen-looks-past-boj.html "Aussie dollar firm as bonds tumble, yen looks past BOJ") rose 0.51% to $0.6664, after earlier getting to $0.6717, the highest since April 21. The currency jumped against the dollar after the Reserve Bank of Australia (RBA) unexpectedly [lifted the cash rate to 3.85% and said further tightening may be required to ensure that inflation](https://www.financedigest.com/uks-ftse-100-gets-a-lift-from-commodities-as-u-s-inflation-data-looms.html "UK’s FTSE 100 gets a lift from commodities as U.S. inflation data looms") returns to target in a reasonable time frame. I would think the RBA now thinks they need to see a 4 in front of the cash rate before thinking they might be done,” said Ray Attrill, head of FX strategy at [National Australia Bank](https://www.financedigest.com/swiss-national-bank-raises-rates-says-bank-crisis-stopped.html "Swiss National Bank raises rates, says bank crisis stopped"). Certainly, the [data flow since April has been on the strong](https://www.financedigest.com/global-shares-slide-dollar-gains-as-rates-rise-on-strong-data.html "Global shares slide, dollar gains as rates rise on strong data") side,” he added. “It’s very probable that another one is to come, though whether it’s as soon as June remains to be seen.” The yen gained, reversing earlier losses after last [week’s Bank](https://www.financedigest.com/spain-expects-to-agree-with-banks-mortgage-relief-measures-by-end-of-week.html "Spain expects to agree with banks mortgage relief measures by end of week") of Japan decision to maintain ultra-low interest rates. The dollar fell 0.56% to 136.67 yen, after earlier hitting 137.78, the [highest since March](https://www.financedigest.com/russian-inflation-accelerates-to-7-61-m-m-in-march-highest-since-1999.html "Russian inflation accelerates to 7.61% m/m in March, highest since 1999") 8. ======================================================== Currency bid prices at 3:00PM (1900 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index 101.9300 102.1700 -0.22% -1.507% +102.4000 +101.8900 Euro/Dollar $1.1001 $1.0976 +0.23% +2.67% +$1.1007 +$1.0940 Dollar/Yen 136.6700 137.4600 -0.56% +4.25% +137.7650 +136.3300 Euro/Yen 150.40 150.91 -0.34% +7.20% +151.6100 +149.8400 Dollar/Swiss 0.8933 0.8959 -0.29% -3.39% +0.8995 +0.8928 Sterling/Dollar $1.2469 $1.2495 -0.20% +3.11% +$1.2512 +$1.2436 Dollar/Canadian 1.3619 1.3543 +0.59% +0.54% +1.3637 +1.3529 Aussie/Dollar $0.6664 $0.6631 +0.51% -2.24% +$0.6717 +$0.6621 Euro/Swiss 0.9825 0.9828 -0.03% -0.69% +0.9867 +0.9816 Euro/Sterling 0.8821 0.8782 +0.44% -0.26% +0.8822 +0.8780 NZ $0.6208 $0.6164 +0.72% -2.22% +$0.6218 +$0.6164 Dollar/Dollar Dollar/Norway 10.8000 10.7340 +0.64% +10.08% +10.8290 +10.6960 Euro/Norway 11.8828 11.7726 +0.94% +13.24% +11.8965 +11.7425 Dollar/Sweden 10.3013 10.3018 +0.06% -1.02% +10.3446 +10.2666 Euro/Sweden 11.3331 11.3267 +0.06% +1.65% +11.3388 +11.2684 [(Reporting by Karen Brettell: Additional reporting by Kevin Buckland in Tokyo and Alun John in London; Editing by Bernadette Baum and Jonathan Oatis)](https://www.financedigest.com/london-reclaims-place-as-preeminent-global-financial-centre-for-the-first-time-since-2013-according-to-global-regulatory-outlook-report-from-duff-phelps.html "London reclaims place as preeminent global financial centre for the first time since 2013, according to Global Regulatory Outlook report from Duff & Phelps") --- This blog is powered by Superblog. 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