Dollar's rebound fizzles despite US jobs data boost

London

THE dollar remained mired near three-year lows on Monday after rebounding at the end of last week as resurgent US wage inflation data failed to quell scepticism among investors about the currency's outlook.

A strong US jobs report on Friday showed wages growing at their fastest pace in more than eight years, leading to a rebound for the dollar and raising the possibility of more tightening by the Federal Reserve than markets had anticipated.

While stocks slumped on Monday and bond yields rose in response to the threat of quick policy tightening, analysts said the impact on the struggling dollar was not so clear, as the unwinding of dollar-funded carry trades clashed with grow…