Dollar Near 2-Week Lows

2026-09-03 13:30 By Joana Taborda 1 min. read

The dollar index fell to 99 on Thursday, its lowest level in nearly two weeks, after comments from Fed Governor Waller signaled support for keeping interest rates unchanged if inflation continues to show signs of improvement.

“If this continues in the data due over the next two weeks, I would be inclined to support holding the target for the federal funds rate at its current setting,” Waller said.

Also, a moderation in oil price gains offered some relief from concerns over mounting inflationary pressures.

Markets are currently pricing roughly a 50% probability of a Fed rate hike this month, down from around 70% earlier in the week, when a spike in oil prices heightened inflation concerns and following Fed Chair Warsh’s pledge at the Jackson Hole Symposium to keep inflation under control.

Investors now await Friday’s jobs report while the next key inflation readings are due next week.

The greenback was mostly lower against the yen, with traders raising bets on Bank ?of Japan rate hikes.



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Dollar Near 2-Week Lows
The dollar index fell to 99 on Thursday, its lowest level in nearly two weeks, after comments from Fed Governor Waller signaled support for keeping interest rates unchanged if inflation continues to show signs of improvement. “If this continues in the data due over the next two weeks, I would be inclined to support holding the target for the federal funds rate at its current setting,” Waller said. Also, a moderation in oil price gains offered some relief from concerns over mounting inflationary pressures. Markets are currently pricing roughly a 50% probability of a Fed rate hike this month, down from around 70% earlier in the week, when a spike in oil prices heightened inflation concerns and following Fed Chair Warsh’s pledge at the Jackson Hole Symposium to keep inflation under control. Investors now await Friday’s jobs report while the next key inflation readings are due next week. The greenback was mostly lower against the yen, with traders raising bets on Bank ?of Japan rate hikes.
2026-09-03
Dollar Eases as Yen Strengthens
The dollar index slipped to around 99.5 on Thursday, extending losses from the previous session, as a sharp yen rally weighed on the greenback amid speculation that authorities had conducted a rate check and could intervene again to support the Japanese currency. In the US, New York Fed's John Williams said there is evidence that inflation continues to ease as the impact of tariffs fades, while higher energy prices have yet to spill over into other services. Data on Wednesday also showed that US private employment growth slowed in August. Still, markets are pricing in around a two-thirds chance of a Fed rate hike later this month. Investors now look ahead to weekly jobless claims data on Thursday ahead of Friday’s August payrolls report for further guidance. Elsewhere, oil prices halted their rally after President Trump said the latest attacks on Iran would be short-lived, easing inflation concerns and reducing safe-haven demand for the greenback.
2026-09-03
Dollar Weakens Slightly on Labor Data
The dollar index cut modest gains to trade slightly lower at 99.5 on Wednesday as investors digested the latest ADP employment report. US private businesses added a net 38,000 jobs in August, the weakest increase since January and below expectations of 47,000, pointing to a broader cooling in the labor market. Despite the soft data, the greenback remained near a two-week high as investors sought safety amid concerns over the economic impact of the energy shock and diverging monetary policy paths across major economies. The US said it had launched overnight airstrikes on targets in Iran, prompting retaliation from Tehran in the most serious escalation between the two countries in weeks. Meanwhile, markets are pricing in a 66% probability of a September Fed hike, significantly higher than around 40% a week ago, according to the CME FedWatch Tool.
2026-09-02