Dollar near one-month low as payrolls test looms

 Dollar near one-month low as payrolls test looms

By Kevin Buckland

TOKYO (Reuters) – The dollar sank to its lowest in almost a month against major rivals on Friday, ahead of a crucial U.S. jobs report that could spur the Federal Reserve to an earlier tapering of stimulus.

The dollar index, which measures the greenback against six peers, slipped 0.04% to 92.193 after earlier touching 92.189 for the first time since Aug. 5.

The euro edged up 0.02% to $1.1878, after hitting the highest since Aug. 4 at $1.1880.

The U.S. central bank has made a labour market recovery a condition for paring pandemic-era asset purchases.

The dollar had been strengthening for most of last month on the view that a taper could be imminent, even as COVID-19 cases spiked in the United States, which paradoxically gave the currency an additional boost because of its role as a safe haven.

But the dollar index retreated after hitting a 9 1/2-month high of 93.734 on Aug. 20 as Fed officials began suggesting the virus’…

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