Dollar weakens

TOKYO: The dollar struggled near 3-1/2-week lows against its peers on Monday after U.S. jobs data showed slower-than-expected wages growth, while the pound retreated as a key member of Britain´s cabinet resigned over Prime Minister Theresa May´s Brexit plan.

The dollar index against a basket of six major currencies was 0.1 percent lower at 93.962.. It had lost nearly 0.5 percent on Friday and stooped to 93.921, its lowest since June 14, after closely-watched U.S. wages indicators disappointed the market. Data on Friday showed average U.S. hourly earnings gained five cents, or 0.2 percent in June after increasing 0.3 percent in May. This pointed to moderate inflation pressures that dented expectations that the Federal Reserve would raise interest rates a total of four times in 2018. Nonfarm payrolls did rise by a stronger-than-expected 213,000 in June, Friday´s data also showed, although this had little impact on currencies.

"The wages component has been the focal point for the market for a while now, rather than the nonfarm payrolls, and the dollar slipped accordingly. The flattening of the U.S. yield curve, perhaps reflecting worries about the economic impact of trade conflicts, is also a key factor weighing on the dollar," said Junichi Ishikawa, senior forex strategist at IG Securities in Tokyo. —Reuters