US Dollar Index Holds Near 1-Month Low

2025-12-05 16:02 By Andre Joaquim 1 min. read

The dollar index held below 99 on Friday, a one-month low, as the prospect of more rate cuts by the Federal Reserve contrasted with those from other central banks.

Rate futures maintained the consensus of a 25bps cut by the Fed in its December meeting, bolstered after a series of pessimistic labor market data and dovish comments from FOMC Governor Waller and New York Fed President Williams.

Data from the ADP unexpectedly pointed to a reduction in private payrolls during November, while outstanding unemployment claims held near four-year highs.

In the meantime, the University of Michigan consumer confidence survey reflected strong pessimism for labor expectations, despite the slight improvement, while the lack of upside surprises for September's PCE price index favored the argument for dovish FOMC members.

Conversely, ECB policymakers showed some consensus that rates will remain stable in the meantime on inflation risks, while the BoJ signaled it will deliver a hike this month.



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