The dollar stabilized on Monday in spot foreign-exchange trading in Asia, after stronger-than-expected U.S. jobs data on Friday boosted the currency sharply higher on expectations of a rate increase from the U.S. Federal Reserve in December.
Yet foreign-exchange market participants are looking beyond the possible rate increase at the December meeting, and starting to factor in additional rate increases next year, Tokyo dealers said.
“The market has factored in the December rate increase to a good extent. The focus is shifting to when the second increase could be taking place,” said Shigetake Nakayama, chief manager of foreign-exchange trading at Bank of Tokyo-Mitsubishi UFJ.
