Dollar Languishes at Over 1-Month Low

2025-12-04 01:58 By Jam Kaimo Samonte 1 min. read

The dollar index held below 99 on Thursday, hovering at its lowest levels in more than a month as mounting evidence of a weakening US jobs market strengthened expectations for a Federal Reserve rate cut next week.

ADP data released Wednesday showed a surprise 32,000 drop in private payrolls, adding to concerns about a deeper slowdown in the US labor market.

Markets are now assigning an 89% chance that the Fed will deliver a 25 basis point cut this month, with three additional reductions priced in for next year.

Investors are also assessing the prospect of White House economic adviser Kevin Hassett replacing Fed Chair Jerome Powell in May, a move that could signal a push for more aggressive easing.

Externally, the dollar faced pressure from a stronger euro after solid Eurozone business activity data.

Traders also monitored the yen, which continued to edge higher amid speculation that the Bank of Japan could raise rates later this month.



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