Dollar edges higher despite dovish fed talk

[NEW YORK] The dollar edged higher against the euro Monday, trimming sharp losses that came after last week's dismal US jobs report for March.

After dropping past the US$1.10 per euro threshold in the wake of Friday's employment report, the greenback pulled back to US$1.0928 in late trade Monday.

But it remained weak relative to recent weeks.

That is in part because of a fall in the ISM service sector purchasing managers index from February, as well as dovish talk from New York Federal Reserve president William Dudley, who called US economic growth in the first quarter "quite weak".

Mr Dudley stressed in a speech in New Jersey that given the slowdown, the timing of any move to increase interest rates "remains uncertain because the future evolution of the economy cannot be fully anticipated."

"It will be important to monitor developments to determine whether the softness in the March labor market report evident on Friday foreshadows a more substantial slowing in the labour market than I currently anticipate."

The yen meanwhile sagged in advance of a Bank of Japan monetary policy meeting this week that will have to confront more flat growth in the economy.

AFP