Dollar Rises, Then Falters; Oil Slides
FILE - U.S. $1 notes.
VOA News,August 11, 2015
An improving job market and expected interest rate increases have been strengthening the value of the dollar, while worries about China's economic growth and a rising oil supply are hurting the price of oil.
The dollar hit a nearly four-month high Friday but slipped a bit in Monday's trading on uncertainty about the timing of an interest rate hike.
The dollar was boosted when the U.S. unemployment rate held steady at its lowest level in nearly seven years, and the economy had a net gain of 215,000 jobs. The improving job market reinforced expectations the U.S. central bank will raise interest rates as early as September.
Higher U.S. interest rates tend to make U.S. investments more profitable, so investors purchase U.S. dollars and equities. Greater demand for dollars and stocks pushes up their prices.