The US dollar remained near a six-week low while the Japanese yen eased on Thursday as traders awaited further developments on a proposed US-Iran deal and Friday’s US jobs report for clues on the Federal Reserve’s next interest rate move.
The yen was 0.1% weaker at 157.88 per US dollar, giving back some of the gains following Japan’s recent intervention. It had strengthened to 155.20 on Monday but remains well above its multi-decade low of almost 164 reached in July.
The dollar index, which measures the US currency against six major peers, edged 0.1% higher to 99.76 after hitting a six-week low on Monday.
The euro was steady at US$1.1544 while sterling slipped 0.1% to US$1.3454. The Australian dollar fell 0.2% to US$0.7039 while the New Zealand dollar was also down 0.2% at US$0.5873.
Markets remained focused on developments around the Strait of Hormuz after a proposed deal between Iran and Oman was reported to potentially give Tehran control over inbound traffic through the strategic waterway.
There was no immediate US comment on the proposal, while President Donald Trump has said a deal to reopen the strait was imminent. US officials have repeatedly said Washington would not accept Iranian control over access to the key energy shipping route.
Brent crude was steady at around US$79.50 a barrel, close to levels last seen when the US and Iran reached an interim peace agreement in June.
Investors are now turning towards Friday’s US non-farm payrolls report, which could provide further clues on the Fed’s interest rate path after the central bank left rates unchanged last month.
A Reuters poll expects US employers to have added 80,000 jobs in July, up from 57,000 in June, while the unemployment rate is forecast to remain at 4.2%.
A stronger jobs reading could support the dollar by strengthening expectations of a September rate hike, while a weaker report could reinforce expectations that the Fed will keep rates unchanged.
