In the NY foreign exchange market on 2 October, the dollar-yen rate fell to ¥156.95 before rising to ¥157.91 at the close. U.S. employment data and reports of an emergency oil-reserve release moved the market.
In the NY foreign exchange market on 2 October, the dollar-yen rate temporarily fell to ¥156.95 before rebounding to ¥157.91 at the close. While U.S. nonfarm payrolls in September fell short of expectations, the unemployment rate exceeded expectations, prompting a period in which expectations for an additional rate hike at the October FOMC meeting receded. Meanwhile, the G7's decision to release emergency reserves of oil and diesel fuel pressured oil prices lower, and the view emerged that this supported dollar selling.
Dollar buying was subsequently reported to have resumed after Chicago Fed President Goolsbee said that, although the labor market was stable, inflation remained a problem among the central bank's dual mandate, and indicated that no outcome at the October meeting would be ruled out.
The euro-dollar rate fell to $1.1221 before rising to $1.1285. The euro-yen rate fell to ¥176.62 before rebounding to ¥177.85, while the dollar-swiss franc rate fell to CHF0.8228 before rebounding to CHF0.8298. The currency pairs moved in mixed directions.
Among the main indicators, U.S. nonfarm payrolls in September came in below market expectations. The September unemployment rate was 4.2%, average hourly earnings rose 3.0% year on year and 0.1% month on month. Production-related indicators also included data on orders and shipments in August, presenting an overall picture of an economy at a turning point.