Dollar Extends Gains on Dudley Comments After Mixed Jobs Report
- Disappointing payroll growth offset by drop in jobless rate
- Fed’s Dudley emphasizes ‘little pause’ in rate normalization
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The dollar extended its rebound from session lows after New York Federal Reserve President William Dudley commented on the pace of interest-rate increases, erasing its initial reaction to the March U.S. employment report.
The greenback climbed against most major peers as investors weighed the weaker payrolls number against a jobless rate that unexpectedly sank to the lowest in almost a decade. The currency also tracked a rebound in the U.S. 10-year Treasury yield, after Dudley downplayed the length of any pause in short-term rate normalization by the central bank when it starts to shrink its balance sheet.