The dollar fell for a second day after an unexpected drop in U.S. wages clouded the outlook for interest rates, and crude oil resumed declines. Billionaire Li Ka-shing’s Cheung Kong Holdings Ltd. surged in Hong Kong after a reorganization, while Shanghai shares retreated.
The greenback weakened against most major peers by 11:36 a.m. in Hong Kong as the Australian dollar added 0.5 percent and the euro gained 0.2 percent. Cheung Kong surged 14 percent, while the Shanghai Composite Index headed for its biggest three-day drop in 10 months. Standard & Poor’s 500 Index futures fluctuated. Oil slid at least 1.5 percent in New York and London. Gold advanced 0.3 percent as copper traded near the lowest since 2009. Japan’s markets are closed today.
The biggest drop in American hourly earnings since records began in 2006 is combining with sliding oil prices to damp the outlook for U.S. inflation. That’s making an early Federal Reserve interest-rate increase less likely, reducing the allure of the dollar as it trades near a 10-year high against major peers.
The Bloomberg Dollar Spot Index fell a second day, losing 0.2 percent to 1,139.12. The gauge closed at 1,147.54 on Jan. 8, the highest since January 2005. Japan’s yen strengthened 0.2 percent to 118.25 per dollar, while a gauge tracking emerging Asia currencies against the greenback climbed for a fifth day.
West Texas Intermediate crude dropped 1.6 percent to $47.59 a barrel today, after sinking 8.2 percent last week. Brent oil fell 1.7 percent to $49.27 per barrel. Both contracts are heading for their lowest settlement prices since April 2009. Brent lost 11 percent last week, its worst performance since the five days to Nov. 28.