Dollar edges up as US rates seen higher for longer

The dollar firmed against major peers in Asian trading after a robust U.S. jobs report spurred traders to price in higher interest rates for longer.

The Australian dollar erased early losses after a report showed a pick-up in services activity in key trading partner China. The yuan also got a boost.

The Canadian dollar proved resilient, buoyed by a spike in crude oil prices.

The U.S. dollar garnered support from higher Treasury yields after data on Friday showed payrolls in the public and private sector increased by 339,000 in May, far outstripping the 190,000 forecast on average by economists polled by Reuters.

The U.S. currency gained 0.11% to 140.135 yen , as 10-year U.S. Treasury yields climbed more than 3 basis points to 3.727% in Tokyo. The dollar rallied 0.84% against the yen on Friday.

The euro slipped 0.04% to $1.0702, extending the previous session’s 0.51% slide.

While headline U.S. jobs growth was much stronger than expected in May, wage pressures eased and the unemployment rate climbed off a 53-year low, potentially giving the Federal Reserve scope to pause their rate hiking campaign at the upcoming June 13-14 meeting, as some officials had voiced a preference for doing last week.

This report’s information was first seen on REUTERS; to read more, click this link.