The net results of last week trading saw the dollar finishing lower than the euro. On Monday, traders took profit from quick sell-off, but backed off from testing key support levels ahead of this week US August payrolls report. In early Tuesday’s session, the greenback got a brief breath of fresh air from upbeat US personal spending figures for July. The gains, however, were short-lived as the market mulled data showing a lower-than-expected rise in income and speculated on the employment report due on Friday. US personal income gained at a more modest pace, expanding by 0.1% in July, from an increase of 0.2% the previous month. The market, on the other hand, was expecting income growth of 0.5%. The Federal government also showed US inflation was well under control. Both the price indexes for consumer purchases and core prices, two of the Federal Reserve’s favorite measures of inflation, were unchanged last month. But dealers stayed cleared of long dollar positions ahead of the US employment report. Most analysts believe that job creation in August approximate 160k and is definitely higher than the disappointing numbers for the past few months.

Against the Mauritian rupee, the dollar was offered at 28.76 yesterday against 28.66 a week earlier.

The sterling fell against the broadly stronger greenback but managed to gain versus the sliding euro on Friday, as the single currency took the brunt of the greenback’s revival. Meanwhile, the GDP data that came out of Friday for Britain had a slight impact on the pound, which focused instead on moves of larger currency markets. In addition, the UK’s economy accelerated in the second quarter, driven by strong household spending, with overall growth revised in its second reading at 0.9percent on the quarter. However, consumer confidence slipped in August to its lowest level since last December as a series of hikes from the bank of England started to affect shoppers. As a result, the tug-of-war is on between a strong demand-pull for higher rates and other arguments that expect the rates hike to come close to a peak.

Against the Mauritian rupee, the Sterling was offered at 51.74 yesterday against 51.75 a week earlier.

Last week surprised many analysts with the large net inflow and continued foreign investment in the equity market. The July trade surplus should rise at Yen 900 million compared to yen 1.15trillion in June. July Japanese CPI and August Tokyo CPI should remain unchanged at –0.1%. Household expenditures are expected to rise to 3.4% after falling 1.3% in June. Unemployment is expected unchanged at 4.6% in July.

Against the Mauritian rupee, the Yen was offered at 26.30 yesterday against 26.14 a week earlier.