The dollar pared losses against the euro and Swiss franc on Tuesday after data showed a better-than-expected increase in U.S. job openings. This unexpected jump suggests the labor market remains robust, providing a boost to the dollar. The Labor Department reported that job openings rose by 374,000 to 7.769 million in May.
Following this news, the dollar strengthened, dropping 0.24% to 143.66 against the yen and gaining 0.06% to 0.7925 versus the Swiss franc. Earlier in the day, the dollar had seen drops of 0.46% and 0.28% respectively. The euro last traded down 0.20% at $1.176525 after being up 0.05% earlier.
Job openings boost dollar
The dollar index, which measures the greenback against a basket of currencies, rose 0.161% to 96.908 after being down 0.05% to 96.71. It is on track to snap eight straight sessions of losses.
“It was the worst first half of the year for the U.S. dollar index since 1973, with a lot of that weakness driven by concerns about trade policy and a slowing economy,” said Matthew Weller, global head of market research at StoneX. “But on a very short-term basis, we might be seeing the market get a little bit stretched here, and there might be a case for a U.S. dollar bounce as we move through July.”
U.S. Treasury yields also advanced after the job openings data, with the yield on benchmark U.S. 10-year notes rising 4.1 basis points to 4.267%. The pound sterling weakened 0.11% to $1.3719 against the dollar, extending losses after the Senate approved President Donald Trump’s tax and spending bill.
This stronger dollar performance comes amid significant legislative developments, as the Republican-controlled U.S. Senate recently passed a comprehensive tax and spending bill. The bill, which aligns with many of President Trump’s top priorities, is now moving to the House of Representatives for final approval.
