Dollar climbs as stock rout spreads to Asian, European markets
TLT•The dollar gained against major currencies on Friday as a global equity selloff prompted safe-haven demand and investors awaited the US payrolls report. The euro fell 0.4% to $1.1174, while the dollar rose 0.4% against the yen to 158.3.
1. Dollar gains on safe-haven demand
The US dollar strengthened on Friday as selling in technology stocks spread from Asia to Europe. Analysts said investors were moving into cash and US Treasuries, while US stock futures rebounded. The dollar rose 0.4% against the yen to 158.3 and 0.2% against the Swiss franc to 0.8179; the euro and sterling each fell about 0.4% against the dollar.
2. Payrolls in focus
Investors awaited the US non-farm payrolls report for clues to the Federal Reserve’s interest-rate path. Weekly initial jobless claims fell by 6,000 to 189,000, below the 196,000 estimate. Fed funds futures put the probability of a 25-basis-point rate hike in December at around 65%, down from more than 80% on Wednesday.
