By Sarah Turner, MarketWatch
SYDNEY (MarketWatch) — The dollar index edged higher on Monday, taking back some recent losses linked to better-than-expected U.S. economic data.
The dollar index DXY +0.52% , which measures the greenback against a basket of six currencies, traded at 79.205, from 78.969 in late North American trading on Friday.
The dollar weakened on Friday after the release of a much stronger-than -expected U.S. nonfarm jobs report.
“The fact that encouraging data releases will not alter the Federal Reserve’s dovish stance implies U.S. bond yields will remain compressed, giving no support for the U.S. dollar from higher U.S. yields for some time yet,” said strategists at Credit Agricole.
Still, “a disaster in the euro zone, e.g. a Greek disorderly default, could help the U.S. dollar,” they said.
Greece’s political leaders have yet to agree on a coordinated response to reforms outlined by the European Union, the European Central Bank and the International Monetary Fund in return for more aid, according to reports.
Talks between the political party leaders will start again on Monday after a marathon meeting on Sunday failed to reach agreement on all terms, according to the reports.
The euro EURUSD -0.39% traded at $1.3089, from $1.3147 in late North American trading on Friday.
The dollar USDJPY +0.14% bought 76.73 yen, from ¥76.62 in late trading Friday.
“The risk of Japanese yen intervention has increased significantly as U.S. dollar/yen brushes the psychologically important 76.0 yen level. However, the feeling on the ground is that U.S. dollar/yen will need to broach 75.0 before intervention is actually seen,” the Credit Agricole strategists said.
The British pound GBPUSD -0.26% traded at $1.5779, from $1.5817 on Friday. The Australian dollar AUDUSD -0.37% traded at $1.0724, from $1.0777 in late trading on Friday.
Sarah Turner is MarketWatch's bureau chief in Sydney.
