Dollar weaker as rate increase expectations pushed back

London

THE dollar nursed losses on Monday, falling around 0.5 per cent against the euro and slipping against a basket of currencies, after a weak US jobs report drove traders to push back expectations of a Federal Reserve rate hike to early 2016.

The euro's bounce, though, is likely to remain muted, with the European Central Bank likely to come under additional pressure to ease monetary policy in a bid to neutralise the impact on inflation from a firmer currency.