The dollar extended its decline in the New York market on 2 September, with dollar/yen falling from the upper 159-yen range to the upper 158-yen range. Buying dominated crude oil futures as inventories declined.
In the New York market on 2 September, the dollar weakened against the yen, with dollar/yen falling from 159.72 yen to 158.22 yen by the close. US August ADP employment came in below expectations, while New York Fed President John Williams suggested that inflation was slowing and expectations of rate hikes receded, prompting dollar selling. Lower long-term yields also supported dollar selling, while rising oil prices toward the latter half of the session helped put a floor under the decline.
Euro/dollar edged up from $1.1575 to $1.1609, while euro/yen fell from ¥184.92 to ¥183.66. Pound/dollar fell temporarily from $1.3475 before rebounding to $1.3514. Dollar/Swiss franc declined from CHF0.8149 to CHF0.8117.
NY crude oil futures extended their gains on 2 September. US weekly statistics showed an unexpected decline in crude oil inventories, while uncertainty over the outlook for the US-Iran conflict heightened concerns about supply tightness, prompting buying of crude oil. Key economic indicators, including ADP employment and manufacturing-related data, were released, and markets were driven by both supply-demand factors and economic indicators.