Dollar Near Two-Week Low After US Jobs Data, Yen Holds Near 1986 Low

July 6, 2026
By Mintesinot Nigussie

The US dollar hovered near a two-week low on Monday after weaker-than-expected US employment data prompted investors to scale back expectations of another Federal Reserve interest rate increase this year, while the Japanese yen remained close to its weakest level since 1986, keeping markets alert to the risk of intervention by Japanese authorities, according to Reuters.

The shift in sentiment followed US payroll data released last week showing job growth slowed sharply in June, contributing to the dollar’s biggest weekly decline since April as traders reduced bets on further monetary tightening by the Federal Reserve, Reuters reported.

The dollar index, which measures the currency against six major peers, stood at 100.9 in early trading. The euro traded at 1.1435 US dollars, close to a two-week high, while sterling changed hands at 1.3351 US dollars.

The yen remained under pressure at 161.57 per US dollar, not far from last week’s low of 162.84, its weakest level since 1986, with traders closely watching for possible intervention after a brief surge in yen buying late last week, Reuters said.

In Asia, the South Korean won strengthened modestly to 1,534 per US dollar on the first day of its 24-hour onshore spot dollar-won trading.

Analysts at OCBC told Reuters that slower US hiring had reduced expectations of another Federal Reserve rate hike. However, they noted that a decline in the unemployment rate continued to signal a tight labour market, which could keep policy tightening expectations in place.

Source: FSX Business News