SINGAPORE, June 5 (Reuters) — Asian currencies rose on Monday against a broadly declining dollar after weaker-than-expected US jobs growth in May raised expectations that the US Federal Reserve will pause in its two-year rate-raising campaign.
The South Korean won rose as much as 0.6 percent to 942.5 per dollar, while the Singapore dollar rose as much as half a percent to 1.5720 per dollar.
The currencies benefitted from a dollar that fell to a 1-year low against the euro.
Data on Friday showing the US economy created 75,000 jobs in May, well below forecasts for a 175,000 increase, added to recent weak economic data to reinforce the view that the world’s largest economy was slowing down.
The weak numbers signalled to many analysts that the Fed would hold its benchmark rate at its meeting on June 29.
The Fed has raised the rate 16 times in consecutive meetings over the past two years to 5.0 percent to stifle inflationary pressures, providing with dollar support amid concerns about a yawning US current account deficit.
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