The dollar slid sharply this week and is poised for its largest weekly decline
since April after U.S. June jobs softened and markets trimmed the near-term Fed
rate path; the dollar index fell about 0.5% on the week. EUR/USD rose to 1.1440,
up roughly 0.5% for the week. GBP/USD climbed to 1.3352, gaining about 1.1% and
marking its best weekly performance in nearly three months. USD/JPY, having
retreated from near a 40-year high, fell to around 161 but remains elevated.
Japanese finance and cabinet officials reiterated close market monitoring and
said they stand ready to intervene in FX markets. Analysts say the dollar is
clearly tracking employment data and rate expectations; further weak economic
releases could extend dollar pressure, while the yen’s sustainability depends on
the U.S.-Japan rate differential and any Japanese policy action.
